The Russian economy expanded during the first three months of the year by 4.5 per cent, official figures reveal.

According to data from the Economic Development Ministry, gross domestic product (GDP) increased in March by 4.9 per cent year-on-year, potentially creating more opportunities for employment in the country.

Preliminary government estimates show GDP was up by 0.6 per cent compared with the previous quarter, down from a quarterly rise of 1.7 per cent in the last three months of 2009.

Monthly data show the boost to the economy between February and March was 0.2 per cent, following a 0.7 per cent monthly drop.

The report from the Economic Development Ministry indicates Russia is starting to recover from its recession, following a contraction of its economy by 7.9 per cent in 2009 and a declaration by the prime minister Vladimir Putin this month that the downturn has ended.

Russian officials have signed a new agreement with Norway regarding contested undersea borders that may create new jobs.