Russia’s gross domestic product (GDP) shrank 4% in the second quarter compared to the same period in 2021, according to an official statistical estimate released on Friday, showing the impact of economic sanctions against Moscow.
GDP rose “to 96% (of its value) in the same period in 2021, according to preliminary estimates,” statistics agency Rosstat said in a statement, adding that a more comprehensive assessment will be published on September 9.
These are the first figures from Rosstat on growth for a full quarter in Russia since the launch of Moscow’s offensive against Ukraine in late February.
After the outbreak of this military intervention, Western countries imposed strong sanctions on Moscow that weigh on the Russian economy.
If the Russian GDP had registered in the first quarter of 2022 a growth of 3.5% in one year, according to Rosstat, the country is now sinking into a period of recession.
Inflation at +15.10%
Russia’s central bank said on Friday it expects GDP to contract between 4% and 6% in 2022, then between 1% and 4% in 2023, before rising from 2024.
“The economy is moving towards a new long-term equilibrium… With the transformation of the economy, growth will resume,” he added.
Western sanctions, targeting the energy and banking sectors in particular, have hit the Russian economy hard, impacting supply chains and exports.
Inflation hit its highest level in two decades in April, before slowing. However, it remains high, reaching +15.10% in July for one year.
Source: BFM TV
