Russia's GDP growth slowed in Q2 while inflation continued to soar on the back of heavy state spending: report

• Russia's GDP growth slowed to 4% in Q2, while inflation continued to rise.
• Economists have long been warning that the Russian economy is showing signs of "overheating."
• Russia's central bank raised its key interest rate to 18% last month in an attempt to combat inflation.

Russia's economic growth slowed to 4% in the second quarter of 2024, down from 5.4% in Q1, AFP reported, citing official data released on Friday.

While the Russian economy continues to expand, it marked the lowest quarterly GDP growth result since the beginning of 2023, the report said.

It comes as the Kremlin battles rising inflation and warnings that the economy is overheating.