(Adds quote.)
May 11 (Reuters) - Russia's central bank said on
Thursday it expected gross domestic product (GDP) to grow 4.2%
in the second quarter of 2023, after an expected decline of 2.3%
year-on-year in the first quarter.
It made the forecasts in a monetary policy report, in which
the central bank assessed the current state of the Russian
economy.
Russia's economy defied early expectations of a double-digit
contraction in 2022 after it invaded Ukraine, but a return to
prosperity remains a long way off.
The Russian economy shrank 2.1% in 2022. Before Moscow began
what it calls a "special military operation" in Ukraine, the
government had expected 3% growth.
"In the first months of 2023, business activity grew in
both basic industries and the services sector," the report said,
adding that consumption rebounded after a slump in December.
"Already by the end of 2024, output will return to the
level of the fourth quarter of 2021," it said.
Separately, it said the discount on Russian Urals oil
compared to international benchmark Brent had narrowed to $25 a
barrel by April, from $34 a barrel in January-February, when the
Western price cap put pressure on Russian oil prices.
(Reporting by Reuters;
Editing by Gareth Jones)
