The Russian economy is growing by about 5%, based on the increase in gross domestic product (GDP) in the first half of the year, Russian President Vladimir Putin said on Friday, according to the Interfax news agency.
“We will see what the first half brings, but a growth of around 5% for the country’s GDP,” Putin said at a gathering of university graduates.
Western sanctions have failed to slow the Russian economy, which grew by 5.4% in the first quarter, according to the statistical agency Rosstat.
The growth is mainly attributed to a sharp increase in government spending on armaments and the military, with salaries and payments to the families of the fallen and wounded increasing the incomes of many families.
The labor shortage is also leading to rising wages, with analysts questioning whether the trend is sustainable.
