Reuters
Russia's economy is set for a shallower contraction this year than previously thought, a Reuters poll showed on Friday, but above-target inflation will prevent the central bank from trimming its key rate, squeezing growth prospects. Russia's economy proved resilient in the face of tough Western sanctions imposed after Moscow sent tens of thousands of troops into Ukraine in February last year, but a return to pre-conflict levels of prosperity may be far off as more government spending is directed towards the military. Sergey Konygin, chief economist at Sinara Investment Bank, expects GDP growth of 0.5% in 2023, above the consensus forecast and in spite of deteriorating domestic demand.