Russian economy shrinks 4.1% y/y in Q2 as sanctions weigh – revised data
12:12 pm Friday, September 09th, 2022
(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.
(Reporting by Andrey Ostroukh; editing by Jonathan Oatis)
