Talking Trends: economy returns to pre-pandemic growth path
After the significant rise in 2021 H1, economic growth slowed down at the beginning of the third quarter, closer to the pre-pandemic rate. 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.
The growth rate trended downwards due to the remaining supply-side constraints, namely disruptions in raw materials and components supplies and the gradual exhaustion of the potential to restore demand in increasingly more industries.
July—August recorded some signs of a slight decrease in persistent inflationary pressure, which nonetheless stays elevated compared to the Bank of Russia’s target. Disinflationary effects will be gradually intensifying as the impact of the earlier key rate increase on the economy manifests itself, namely through the level of interest rates and the credit and deposit market. This will slow down inflation in Russia to