Russian Savings Growth Driven By Interest Accrual

Russian economic growth slowed to 5.62 percent in the first quarter, according to economist Andrey Milashenko of Renaissance Capital. President Vladimir Putin disagreed with the calendar explanation, stating that the decline in industry and construction was due to other factors. This figure reflects an economy under severe pressure. The current situation may lead to challenges in social and economic structures if the trend continues. Immediate strategic decisions are required to address these challenges. Moscow released quarterly GDP figures on Thursday showing economic indicators are receding for the first time in three years. The report indicates that the overheating caused by a war economy is receding. Rising wages and consumer prices were also noted in the economic data. Russia experienced its first quarterly GDP contraction in three years, reaching a total decline of 0.3 percent. The contraction was driven by a 1.8 percent drop in January and a 1.1 percent drop in February. Growth returned in March, but the overall quarterly figure remains negative. Authorities have not provided signals to indicate this is a temporary fluctuation.