By Rhod Mackenzie
Russia's GDP grew by 1.1% in May against the previous month after a 0.1% increase in April, VEB.RF's Institute for Research and Expertise reported. The country's economy has only one percent left to grow to reach the pre-war maximum of December 2021, and the pre-pandemic peak of October 2019 GDP has already been reached
In general, over the five months since the beginning of 2023, GDP has grown by 0.5% compared to January-May last year. Earlier, the Ministry of Economic Development gave a close estimate of growth for the first five months - plus 0.6%.
In May, most of the components of value-added production showed a positive trend compared to April: manufacturing increased (1.8%), production of electricity, gas and water (1.1%), construction (2.0%), retail trade (1.8%). .1%), wholesale trade (3.7%), passenger traffic (0.6%), catering (0.6%), paid services (0.5%) and net taxes on products (4.0%) . Mining (-0.6%) and cargo turnover (-1.3%) demonstrated negative dynamics. Agricultural production with a seasonally excluded component remained at the level of the previous month.
The main driver of May growth was wholesale sales. Sales of food, pharmaceuticals and investment goods increased sharply. The manufacturing industry remains another important growth factor. In May, the level of output in processing exceeded the pre-crisis highs of the end of 2021. Growth was recorded in almost all types of activities, including industries related to the defense order, as well as purely civilian production (food and building materials).
But in the extractive industries, the decline continues. The strongest in gas production and transportation of gas, which negatively affects the dynamics of transport freight turnover.
Unexpectedly strong results in May showed consumer demand. Retail sales, the volume of paid services and the turnover of public catering have grown. The transport passenger sector turnover has been increasing for the seventh month in a row.
This article originally appeared in Russian at expert.ru