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Russia Posts 1.3% GDP Growth in Second Quarter

Consumer spending powered the rebound because strikes on refineries and e‑commerce warehouses and persistent borrowing and labor pressures led the central bank to lower its annual growth outlook.

Ukraine has been hitting refineries across Russia

Overview

  • Rosstat reported that Russia's economy grew 1.3 percent in April–June after a 0.2 percent contraction in January–March, marking a shift from quarter‑to‑quarter decline to expansion.
  • The economy ministry said stable domestic demand, led by consumer spending, was the main driver of the Q2 rebound and that recovery trends recorded in March have continued.
  • Ukraine's drone campaign struck oil refineries in the spring and later hit warehouses used by Wildberries, triggering multi‑week fuel shortages and causing losses for the retailer and hundreds of third‑party sellers.
  • The Bank of Russia trimmed its full‑year GDP forecast to flat–1 percent because the strikes reinforce existing headwinds including high borrowing costs, labour shortages and inflation.
  • The rebound offers short‑term relief but analysts and officials warn that damage to energy and logistics infrastructure plus structural strains in non‑military sectors could limit growth through the rest of the year.