Russian economy shrinks 4.1pc
Russia's economy shrank 4.1 per cent 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 per cent.
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 February 24.
In the first quarter, the economy grew by 3.5 per cent in annual terms but shrank 0.4 per cent 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 per cent among other parts of gross domestic product.
The manufacturing sector shrank 4 per cent and extraction of mineral resources fell 0.8 per cent, while the construction sector expanded 3.4 per cent, 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.
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