Russian economy's upward deviation from balanced growth trajectory remains significant - Central Bank

MOSCOW. Dec 20 (Interfax) - Russia's economy grew at a rate close to the third quarter levels in October-November, and the deviation from balanced growth remains significant, the Central Bank of Russia said in a press release published following the meeting of the regulator's board of directors, during which the CBR retained the key rate at 21% per annum.

"According to high-frequency data, in October-November, the Russian economy grew at a rate close to the 2024 Q3 figures. High domestic demand is still the main driver of growing economic activity. The upward deviation of the Russian economy from a balanced growth path is still significant. This is also evidenced by high current inflationary pressures," the CBR said in the press release.

"The labor market remains tight. Unemployment once again dropped to a new historical low. Rising wages continue to outpace growth in labor productivity. Concurrently, demand for labor force in certain industries has been decreasing, and there has been a reallocation of employees across industries. This may indicate a slight reduction in the labor shortage. This trend is also proved by the decreasing number of vacancies," the CBR said.