The Russian economy is growing by around 5%, based on the increase in gross domestic product (GDP) during the first half of the year, Russian President Vladimir Putin said this Friday, according to the Interfax news agency.
“We will see what the first half brings, but something around 5% growth for the country’s GDP,” Putin told a gathering of university graduates.
Western sanctions have not, in fact, managed to stop the Russian economy. According to the statistics office Rosstat, GDP increased by 5.4% in the first quarter.
The growth was mainly attributed to a sharp increase in state expenditure on armaments and military, with salaries and payments to families of the dead and injured increasing the income of many families.
Labor shortages are also leading to rising wages. Analysts have questioned whether the trend is sustainable.
