Consumption has already returned to pre-crisis growth rates and is not far from where it would have been in the absence of the COVID-19 crisis.
In quarter-on-quarter terms, GDP reached 2% growth.
Russian inflation expectations remained very high in August, according to the latest the Public Opinion Foundation (FOM) report commissioned by the Central Bank of Russia (CBR) and released in August.
The Watcom Shopping index that measures foot traffic in Moscow’s leading malls in real time has returned to normal as Russia’s economy finds a new equilibrium following last year’s crisis. However, soaring prices remain a big concern.
Ukraine's international reserves exceed $30bn, adequate under IMF criterion.
The jobless rate has been constantly falling in the last few years, but the pace slowed in 2020 due to the coronavirus pandemic.
Russia’s economy boomed as the coronacrisis started come to an end in the last quarter of 2020 – a process that is not over. What is happening now is a mild correction from a bounce-back overshoot as a new economic balance is established.
Russia has banked its allocation of Special Drawing Rights (SDR) issued by the International Monetary Fund, lifting its international reserves by $20bn to a new all-time high of $615.6bn as of August 27, the Central Bank of Russia reports.
Figures suggests higher energy prices have not yet passed through to consumer prices so further supply-side inflationary pressures are expected.
Apart from disquiet at reliability of data, observers worry expansion has been bought at cost of a weaker currency and higher inflation.
Report also shows supply chain disruption continued in August, contributing to further rises in input costs and selling prices.
Ukraine’s current account deficit amounted to $293mn in July, enlarging from a $31mn deficit (revised from a previously reported surplus of $295mn) in the previous month mostly due to a deteriorated trade balance.
Russia’s seasonally adjusted IHS Markit Russia Manufacturing PMI index posted 46.5 in August, down from 47.5 in July, the third successive monthly deterioration in operating conditions across the Russian manufacturing sector.
Serbia’s economy weathered the coronacrisis well, dipping by only 6.3% in Q2 2020 and returning to year-on-year growth in the first quarter of this year.
The flash reading puts Poland’s inflation at a 20-year high, adding ever more political heat to the debate about whether the central bank should raise rates.
The reading is an upward revision of 0.3pp versus the flash estimate, and shows that Poland has well and truly shaken off the pandemic-induced recession.
Quarter-on-quarter, Czech GDP increased by 1% in 2Q21, mainly due to a growth in final consumption of households and in gross fixed capital formation.
Economic activity in the second quarter approached the pre-crisis level, as the COVID-19 epidemic subsided, but a new wave of infections has since grown.
Slovenia’s consumer price growth accelerated despite lower food prices reported in August.
Real wages in Ukraine rose 10.2% year on year in July, slowing from 12.9% growth y/y in June, according to the State Statistics Service on August 27. The average monthly nominal wage amounted to UAH14,345 ($527).