(Moscow) Russia’s gross domestic product (GDP) contracted 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.
Posted at 2:23 p.m.
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 complete assessment would be published on September 9.
These are the first figures from Rosstat on growth over 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 heavy sanctions on Moscow which weigh on the Russian economy.
If the Russian GDP had recorded in the first quarter of 2022 a growth of 3.5% over one year, according to Rosstat, the country is now sinking into a period of recession.
The Russian 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 decline in GDP will bottom out in the first six months of 2023,” Central Bank Deputy Governor Alexei Zabotkin said on Friday.
“The economy is moving towards a new long-term equilibrium […] With the transformation of the economy, growth will resume,” he added.
Western sanctions, which notably target the energy and banking sectors, have hit the Russian economy hard, with an impact on supply chains and exports.
Inflation hit its highest level in two decades in April, before slowing down. However, it remains high, reaching +15.10% in July over one year.