The Russian economy contracts by 4.1 pc | The star of the day
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 the previously reported 4.0%.
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 as well as vehicle repair work in the second quarter recorded the largest year-on-year contraction of 14.1% among the other elements 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.