West shocked at success of Russian economy despite sanctions

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August 14 , 2017 – Fort Russ News – 

KtovKurse – translated by Inessa Sinchougova

Despite the sanctions and the fall in oil prices, the Russian economy has grown at the fastest pace since the third quarter of 2012, the German newspaper Frankfurter Allgemeine Zeitung states.

According to Rosstat, the growth rate of economic development in the second quarter of this year by 2.5% exceeded similar indicators in 2016. Since the end of last year, the country’s GDP has increased again, which was not observed for seven quarters before.

According to analysts interviewed, monthly indicators of economic activity suggest a recovery of the Russian economy on a broad basis. “There was a sharp increase in construction and industry,” commented Rosstat’s data to Capital Economics research company.

Growth was also observed in the sphere of trade. At the same time, it was noted that agriculture is the only sector of the economy that has not yet fully recovered. This area in the second quarter showed a decline.

In general, however, GDP growth during the second quarter was lower than the government’s forecast (2.7%), the newspaper states.

Sanctions taught Russia to count “on oneself”, on the development of its own industries, small and medium-sized businesses.

A representative of the Institute of Contemporary Development, Nikita Maslenikov agrees that Russia’s economy has already adapted to external constraints and the latest US sanctions will not have a significant impact. In his opinion, because of these sanctions, Russia will lose only “a few tenths” of the annual rate of GDP growth.

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