The Russian economy is growing by about 5%, based on the increase in gross domestic product (GDP) in the first half, Russian President Vladimir Putin said on Friday, according to the Interfax news agency.
“We will see what the first half brings, but we expect the country’s GDP to grow by about 5%,” Putin told a gathering of university graduates.
Western sanctions have in fact failed to slow down the Russian economy. According to the Rosstat statistics agency, GDP grew by 5.4% in the first quarter.
The growth is mainly attributed to a sharp increase in government spending on armaments and the military. Salaries and payments to the families of the fallen and wounded have increased the income of many families.
Labor shortages are also leading to rising wages, and analysts are questioning whether this trend is sustainable.
