Russian Economy Shrinks 4.1% YoY in Q2 as Sanctions Weigh – Revised Data

Russian Economy Shrinks 4.1% YoY in Q2 as Sanctions Weigh – Revised Data

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  • This content was produced in Russia, where the law limits coverage of Russian military operations in Ukraine.

MOSCOW, Sept. 9 (Reuters) – The Russian economy shrank 4.1% year-on-year in the second quarter of 2022, data from federal statistics agency Rosstat showed on Friday, revising its 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 forces to Ukraine on Feb. 24.

In the first quarter, the economy grew at an annualized 3.5%, according to Rosstat data, but shrank by 0.4% in the first half of 2022.

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Retail and wholesale sales, along with vehicle repair work, showed the largest year-on-year contraction of 14.1% of other parts of gross domestic product in the second quarter.

The manufacturing sector shrank 4% and mineral resource extraction fell 0.8%, while the construction sector grew 3.4%, Rosstat said.

The Russian economy will show a smaller than expected economic contraction in the coming years and could grow again on a quarterly basis from the end of 2022, Economy Minister Maxim Reshetnikov said on Tuesday. read more

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