1 Minute Read by Reuters Staff (Reuters) – MOSCOW, July 1 (Reuters) – Russia’s GDP increased 10.9 percent year on year in May, according to the economy ministry, as the oil-dependent economy continues to rebound from the price shock of 2020. The ministry also downgraded April’s GDP growth to 10.8 percent from 10.7 percent earlier reported. The GDP results support Russia’s general trend of economic recovery after the country’s economy dropped by 3% in 2020, the worst drop in 11 years. According to figures released on Wednesday, Russia’s jobless rate fell to 4.9 percent in May, much below analysts’ expectations and approaching the pre-crisis levels targeted by President Vladimir Putin. However, the future is clouded by high inflation and a weak rouble, leading the central bank to tighten monetary policy. According to a Reuters poll released on Wednesday, the central bank is now projected to hike its key interest rate to 6.0 percent from 5.5 percent in July, for the fourth time this year. (Darya Korsunskaya contributed reporting; Andrey Ostroukh wrote the story; Giles Elgood edited it.)/n
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