Russia: Economy shrank by 2.1 percent in 2022
According to official reports, the Russian economy shrank in the war year 2022. The gross domestic product (GDP) fell by 2.1 percent, as the national statistics office announced on Monday based on preliminary data. In 2021, the Russian economy had grown by 5.6 percent.
Economic development was shaped by the war against Ukraine that began on February 24. Western countries in particular had therefore decided on extensive sanctions. According to the statistics office, wholesale and retail trade, manufacturing and transport have shrunk the most. Industries such as mining, agriculture and construction have grown.
Above all, the armaments industry and companies that supply the Russian army are likely to have benefited from Russia’s attack on Ukraine. Many Western companies, on the other hand, withdrew from Russia. In addition, embargoes hamper many manufacturing processes in Russian industry because parts are missing in many places.