According to an official statistical estimate published on Friday, Russia’s gross domestic product (GDP) shrank by 4% in the second quarter compared to the same period in 2021, writes AFP.

According to preliminary estimates, GDP was “96% (of its value) for the same period in 2021,” statistics agency Rosstat said in a statement, adding that a more complete estimate would be published on September 9.

These are the first quarterly indicators of economic growth in Russia provided by Rosstat after the start of Moscow’s offensive on Ukraine at the end of February.

After the invasion, Western countries imposed strict sanctions against Moscow, which put pressure on the Russian economy.

Although Russia’s GDP grew by 3.5% year-on-year in the first quarter of 2022, according to Rosstat, the country is currently in recession.

Russia’s central bank said on Friday it expects GDP to contract by 4-6% in 2022, then by 1-4% in 2023, before picking up again from 2024.

“The decline in GDP will reach its lowest point in the first six months of 2023,” Central Bank Deputy Chairman Oleksiy Zabotkin said on Friday.

“The economy is moving towards a new long-term equilibrium (…) With the transformation of the economy, growth will resume,” he added.

Western sanctions, which particularly affect the energy and banking sectors, have hit the Russian economy hard, affecting supply chains and exports.

Inflation hit a two-decade high in April before slowing. However, it remains high, reaching +15.10% in July over the year.

• Russia can buy yuan, rupiah and Turkish lira for the “dark days” reserve fund.
• The surplus of the current account of Russia’s balance of payments for six months is approaching 170 billion dollars

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