Russia's economy grows fastest in more than a decade, banking sector adapts to sanctions

Figures released by the Russian Federal Statistics Service show that the country's economy grew 5.5% in the third quarter of 2023, up from 4.9% in the previous quarter, the fastest pace in more than a decade.

Russia's economic growth to reach 5.5% in Q3/2023. (Source: TASS)

Bloomberg News (USA) commented that important sectors of the Russian economy have adapted or fully recovered from sanctions, with a recovery rate much higher than expected.

Specifically, industries from manufacturing to aviation to Russian banking have found ways to adjust to the sanctions “with the aim of boosting the economy.”

The banking sector has emerged as one of the “most obvious” examples of how sectors of the Russian economy have adapted to sanctions. Last year, Western sanctions cut most Moscow banks off the SWIFT international money transfer system. Some banks have also been hampered in their ability to cooperate with international financial institutions.

However, Russia's largest state-owned bank Sber, along with other major banks, is expected to post record profits this year.

“This year will most likely be the most successful year in our history,” stressed Sber CEO Herman Gref.

The total profit of the Russian banking industry in the first nine months of 2023 could reach more than 3,000 billion rubles (equivalent to 33 billion USD), surpassing the previous year's record.

The country's oil and gas revenues also rose to an 18-month high of $17.7 billion in October 2023, as Russia redirected much of its business to eastern markets.

Russia's international air travel is also "developing strongly", with passenger traffic up nearly 30% in the first nine months of 2023 compared to the same period in 2022, the Russian Transport Ministry said.

Source: https://baoquocte.vn/kinh-te-nga-tang-truong-nhanh-nhat-trong-hon-mot-thap-nien-linh-vuc-ngan-hang-thich-ung-trung-phat-250797.html