Cbank: Russia’s GDP to grow 1–1.5% on year in January–March

MOSCOW, Mar 1 (PRIME) -- Russia’s gross domestic product (GDP) is to grow 1–1.5% on the year in January–March, as the economy’s reaction to higher value-added tax (VAT) remains moderate, the central bank said in an analytical report on Friday.

The government raised VAT to 20% from 18% from January 1.

“On the whole, reaction of the Russian economy to increased VAT remains moderate. Under the estimates, GDP’s annual growth will amount to 1–1.5% in the first quarter,” the report said.

GDP’s quarterly growth is to remain at 0.1–0.3% in January–March, the regulator also said.

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