Russian economy shrinks 4.1% year-on-year in second quarter as sanctions weigh
(This content was produced in Russia, where law limits 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 assessment of the contraction from 4.0% previously reported.
Russia faced 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 to Ukraine on February 24.
In the first quarter, the economy grew by 3.5% in annual terms but shrank by 0.4% in the first half of 2022, according to data from Rosstat.
Retail and wholesale sales and vehicle repair work in the second quarter recorded the largest year-over-year contraction of 14.1% among other components of gross domestic product.
The manufacturing sector fell 4% and the extraction of mineral resources fell 0.8%, while the construction sector rose 3.4%, Rosstat said.
The Russian economy will show a less pronounced economic contraction than expected over the next few years and could return to growth on a quarterly basis as early as the end of 2022, Economy Minister Maxim Reshetnikov said on Tuesday.
(Reporting by Andrey Ostroukh; editing by Jonathan Oatis)
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