Despite unprecedented sanctions pressure from unfriendly states, Russia’s gross domestic product continues to grow. According to the updated estimate of the Ministry of Economic Development, the indicator for the nine months of 2024 added 4.2%, Prime Minister Mikhail Mishustin said at a meeting on economic issues.
The main contribution to the dynamics of industry is still made by manufacturing. For three quarters, the growth of this sector amounted to almost 8%, the head of the Cabinet noted.
Russia’s GDP shows steady growth, Artem Deev, head of the analytical department at AMarkets, says. However, there are several important factors that affect the state of the Russian economy. Today, a very important factor is the seasonality factor, which significantly affects food prices, and therefore inflation. Vegetables, fruits, fat-and-oil products and eggs always rise in price in the fall until spring, as the costs of heating farms grow. Food products are a significant part of the consumer basket, the expert emphasizes.
“In addition, we face high rates as well as very expensive loans for businesses that do not use state support measures. Rates are sometimes higher than the profitability of the business itself, especially with a high expenditure part. Accordingly, the forecast for Russia’s GDP by the end of the year may deteriorate somewhat due to the growing rate of inflation,” the analyst warns.