Russian economy contracted 4.1% y/y in Q2 as sanctions weigh heavily – data restated

MOSCOW (Reuters) – Russia’s economy contracted by 4.1% in the second quarter of 2022 from a year earlier, data from the Federal Statistical Office Rosstat showed on Friday, compared with a previously reported 4.0%. Fixed the reduced rating from .

Russia faces unprecedented Western sanctions in the second quarter, the first quarter of what Russia calls a “special military operation” in Ukraine after it sent troops to Ukraine on February 24. did.

According to Rosstat data, the economy grew at an annualized rate of 3.5% in the first quarter, but contracted by 0.4% in the first half of 2022.

Among other parts of gross domestic product, retail and wholesale sales and auto repair work fell 14.1% year-on-year in the second quarter.

According to Rosstat, the manufacturing sector contracted by 4%, mining mining fell by 0.8% and the construction sector expanded by 3.4%.

Economy Minister Maxim Reshetnikov said the Russian economy could record a slower-than-expected contraction over the next few years and return to growth on a quarterly basis from the end of 2022 at the earliest.read more

Reporting by Andrey Ostroukh.Editing by Jonathan Ortiz

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