Russia’s War Economy Expands More Than Forecast Despite Sanctions
- GDP expanded 4.9% in second quarter, topping most forecasts
- Russia faces growing labor shortage amid military recruitment
An advertising screen honouring a Russian serviceman in central Moscow,
Photographer: Natalia Kolesnikova/AFP/Getty Images
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Russia’s economy ended four quarters of contraction with a bigger growth spurt than forecast, putting it on track to return to its pre-war level as soon as next year as it adapts to the impact of international sanctions.
The stretch of annual declines since the invasion of Ukraine was the longest in more than half a decade. But with fiscal policy turning increasingly loose in support of the war effort, gross domestic product expanded 4.9% in the second quarter.