Russia's GDP declined 4.0% year on year in the second quarter of 2022, the first full quarter of what Russia calls a "special military operation" in Ukraine, according to preliminary figures released on Friday by the government statistics service Rosstat.
After Moscow pushed its armed forces into Ukraine on February 24, it triggered widespread Western restrictions on its energy and banking sectors, including a freeze on Russian reserves kept abroad, prompting a flurry of Western corporations to exit the market.
Rosstat did not disclose any additional information, but analysts believe the drop was due by sluggish consumer demand and the fallout from sanctions.
"June data suggests the contraction in the Russian economy seems to have bottomed out as the situation in some industries is stabilising," said Sergey Konygin, an economist at Sinara Investment Bank.
Russia's GDP declined 4.0% year on year in the second quarter of 2022, the first full quarter of what Russia calls a "special military operation" in Ukraine, according to preliminary figures released on Friday by the government statistics service Rosstat.
After Moscow pushed its armed forces into Ukraine on February 24, it triggered widespread Western restrictions on its energy and banking sectors, including a freeze on Russian reserves kept abroad, prompting a flurry of Western corporations to exit the market.
Rosstat did not disclose any additional information, but analysts believe the drop was due by sluggish consumer demand and the fallout from sanctions.
Forecasts have now weakened as Russia battles back against sanctions.
The central bank forecasted an 8%-10% drop in GDP in April, but revised that down to a 4%-6% drop last month.
"GDP contraction will reach its bottom in the first half of 2023," central bank deputy chairman Alexei Zabotkin said on Friday. "The economy will move towards a new long-term equilibrium."
(Source:www.business-standard.com)
After Moscow pushed its armed forces into Ukraine on February 24, it triggered widespread Western restrictions on its energy and banking sectors, including a freeze on Russian reserves kept abroad, prompting a flurry of Western corporations to exit the market.
Rosstat did not disclose any additional information, but analysts believe the drop was due by sluggish consumer demand and the fallout from sanctions.
"June data suggests the contraction in the Russian economy seems to have bottomed out as the situation in some industries is stabilising," said Sergey Konygin, an economist at Sinara Investment Bank.
Russia's GDP declined 4.0% year on year in the second quarter of 2022, the first full quarter of what Russia calls a "special military operation" in Ukraine, according to preliminary figures released on Friday by the government statistics service Rosstat.
After Moscow pushed its armed forces into Ukraine on February 24, it triggered widespread Western restrictions on its energy and banking sectors, including a freeze on Russian reserves kept abroad, prompting a flurry of Western corporations to exit the market.
Rosstat did not disclose any additional information, but analysts believe the drop was due by sluggish consumer demand and the fallout from sanctions.
Forecasts have now weakened as Russia battles back against sanctions.
The central bank forecasted an 8%-10% drop in GDP in April, but revised that down to a 4%-6% drop last month.
"GDP contraction will reach its bottom in the first half of 2023," central bank deputy chairman Alexei Zabotkin said on Friday. "The economy will move towards a new long-term equilibrium."
(Source:www.business-standard.com)
