Economic recovery continues
The Russian economy continued to grow in 2021 Q1. This is confirmed by statistics for January and February, as well as the movements of high-frequency indicators in March. The continuing lending expansion significantly supports the increase in consumer and investment activity. The expansion of production activity continues but is constrained by a shortage of components and logistics problems.
The recovery of consumer demand amid a steady rise in costs and production constraints is gaining a pronounced proinflationary nature. The growth of consumer prices remains elevated. The overall price growth will slow down gradually on the back of monetary policy normalisation.These are the findings presented in the new issue of the macroeconomic bulletin Talking Trends prepared by the Bank of Russia’s Research and Forecasting Department.
