Russian Q2 growth expands 5.4% on year

| July 27, 2010

Russia’s economy improved in the second quarter of 2010 after figures showed growth of 5.4% compared with the same period a year ago.

Economic growth has been driven in the three month period by rising consumer demand, according to the country’s deputy economy minister, Andrei Klepach.

In the first quarter, GDP expanded 2.9% from the same period the year earlier. “We are talking about an acceleration of growth,” Klepach said.

The figures will boost the economy, which contracted 7.9% in 2009 – the largest annual fall in 15 years.

The Russian economy, which is heavily reliant on oil exports, suffered from a severe downturn but it appears the economy is now on the road to recovery.

The Government has forecast the economy to grow by 4% this year.

“The factors of growth remain fairly fragile with the exception of consumer demand,” added Klepach.

Russia’s statistical agency, Rosstat, will publish the official growth figures next month.

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