Many Western corporations have already withdrawn from Russia.
(Photo: IMAGO/ITAR-TASS)
Moscow Following the invasion of Ukraine and sanctions imposed by the West, Russia’s economy plummeted in the second quarter. Gross domestic product (GDP) shrank by 4.0 percent from April to June compared to the same period last year, preliminary data from the Rosstat statistical office showed on Friday. At the beginning of the year, there was still an increase in GDP of 3.5 percent. Nevertheless, the decline was not as great as expected by experts.
Rosstat did not provide any further information on the reasons for the drop. However, analysts attribute the cause to a drop in consumer demand and sanctions over Russia’s invasion of Ukraine. Analysts polled by Reuters had expected economic output to fall by 7 percent in the second quarter.
Western countries have responded to Russia’s war of aggression against Ukraine, which began on February 24, with sweeping sanctions. The Russian government, on the other hand, speaks of a “special military operation”.
The International Monetary Fund (IMF) expects a deep and long recession in Russia. Economic output in the country between Kaliningrad and Vladivostok is expected to shrink by 6.0 percent this year. For 2023, the fund expects a minus of 3.5 percent in GDP.
Top jobs of the day
Find the best jobs now and
be notified by email.
More: Ukraine’s economy and military on the verge of collapse, according to economists