Page 34 - RusRPTJun21

from a contraction of 1.7% y/y in 4Q20 to a contraction of 1.6% y/y in 1Q21.
The most notable improvement was seen in market services rendered to the population, the contraction in which eased from 12.7% y/y in 4Q20 to only 1.6% y/y in 1Q21.
Economic activity has clearly started to bounce back from March and is expected to gather momentum from here. Sber speculates there will be a growth spike in the second quarter of this year due to the base effects after business was brought to a standstill by last April’s countrywide strict lockdown and the collapse of the oil prices following the failure of the OPEC+ deal.
There are still several unknows in the short-term as due to the reluctance of Russians to get vaccinated experts worry about a fresh wave of the pandemic breaking out in the late summer. But analysts hope the strength of the recovery will carry enough momentum to see growth continue in the second quarter.
34 RUSSIA Country Report June 2021 www.intellinews.com