Russian economy grows 10.5% y/y in Q2, its strongest leap since 2000

MOSCOW, Sept 10 (Reuters) - The Russian economy expanded by 10.5% year on year in the second quarter of 2021, Rosstat data showed on Friday, posting its strongest leap since 2000 as it recovered after a sharp contraction caused by the COVID-19 pandemic.

Rosstat, the federal statistics service, has preliminarily reported a 10.3% annual growth in Russia’s gross domestic product in the second quarter, one year after lockdowns hit Russia’s economic activity.

After shrinking by 3.0% in 2020, its sharpest in 11 years, the Russian economy has already reached pre-pandemic levels, buoyed by a rebound in global commodity prices.

But living standards and some sectors have not fully recovered, taking a hit from the weaker rouble and high inflation.

Stubbornly elevated inflation prompted the central bank to raise its key interest rate for the fifth time this year on Friday.

Versus the second quarter of 2019, GDP grew by 1.8%, Rosstat data showed.

The second-quarter GDP growth was the strongest since the third quarter of 2000, according to Reuters data. (Reporting by Andrey Ostroukh; editing by Jonathan Oatis)