Talking Trends: economic growth continues
By the end of the quarter, GDP bounced back to its pre-pandemic level, whereas output in many industries (especially those focused on consumer and investment demand) already exceeded this level. 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.
However, global disruptions in supply chains still hinder the expansion of supply which lags behind rising demand.
Consequently, inflationary pressure remains elevated. This is associated with both monetary and non-monetary factors. The latter have a more noticeable and often long-lasting effect, although monetary factors are a significant contributor to price growth. The Bank of Russia’s decisions to raise the key rate will help bring inflation back to 4% in 2022 H2 and subsequently stabilise it close to the target.
