Russia's GDP rises 2.3% in Q1 excluding calendar factor according to Economic Development Ministry

MOSCOW. May 7 (Interfax) - Russia's GDP rose 2.3% year-on-year in Q1 2025, excluding the calendar factor, the Economic Development Ministry said in a government press release following a meeting with Deputy Prime Minister Alexander Novak on economic issues.

"GDP grew 2.3% in the first quarter according to the Economic Development Ministry, accounting for the calendar factor of February. Many sectors of the economy continued to see the indicators rise in the first quarter compared to the same period last year. The most active growth in January-March was observed in the mechanical engineering industry, up 13% in output; the public catering sector demonstrated growth of 7.1%; the construction industry added 6.9%; and the chemical complex jumped 4.8%," according to the statement.

"The Economic Development Ministry and the Finance Ministry have been instructed to continue monitoring the current situation in the economy with an assessment of current risks until the end of the year," according to the press release.

As reported, the Economic Development Ministry has estimated growth of 1.7% year-on-year in the first quarter without excluding the calendar factor, namely February 29, 2024, in the leap year, including 1.4% year-on-year in March, 0.7% year-on-year in February precisely owing to the leap-year day last year, and 3.0% year-on-year in January.

The Economic Development Ministry forecasts Russia's GDP to grow 2.5% in 2025 in the baseline scenario, and it has retained the forecast in April from the September version.

The Central Bank's forecast is more conservative at 1%-2% in 2025.

Analysts polled by Interfax in early April forecast an increase of 1.6% in GDP in 2025.