Russian economy shrinks 4.1% y/y in Q2 as sanctions weigh – revised data
2022.09.11 01:05
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FILE PHOTO: A Yandex Food courier rides a bicycle past the temporarily closed Prada shop and business property put out for rent, in Stoleshnikov Lane, which is one of the city’s most expensive shopping areas accommodating numerous boutiques and luxury sho
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(This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.)
MOSCOW (Reuters) – Russia’s economy shrank 4.1% year-on-year in the second quarter of 2022, data from the federal statistics service Rosstat showed on Friday, revising the contraction assessment from the previously reported 4.0%.
Russia encountered unprecedented Western sanctions in the second quarter, the first full quarter of what Russia calls a “special military operation” in Ukraine, after Moscow sent its armed forces into Ukraine on Feb. 24.
In the first quarter, the economy grew by 3.5% in annual terms but shrank 0.4% in the first half of 2022, according to Rosstat data.
Retail and wholesale sales together with repair work for vehicles showed in the second quarter the largest year-on-year contraction of 14.1% among other parts of gross domestic product.
The manufacturing sector shrank 4% and extraction of mineral resources fell 0.8%, wile the construction sector expanded 3.4%, Rosstat said.
Russia’s economy will post a shallower economic contraction than expected over the coming years and could return to growth on a quarterly basis from as early as the end of 2022, Economy Minister Maxim Reshetnikov said on Tuesday.
