The main factors behind Russia’s GDP decline are transportation and logistics restrictions and reducing domestic demand.
At the end of May, Russia’s economy contracted 4.3% year-on-year after falling 2.8% in April. On Thursday, June 30, Interfax reported in connection with the data of the Ministry of Economic Development of the Russian Federation.
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At the same time, in January the growth of the Russian economy reached 5.7%, in February – 4.1%, in March – 1.3%. According to the January-May 2022 results, the agency estimates GDP growth at the level of 0.5% year-on-year.
“The main factors behind the GDP decline are transportation and logistics restrictions and reduced domestic demand,” the ministry said in a report.
In major sectors of the economy, the decline in wholesale trade accelerated (minus 15.5% y/y in May after minus 11.9% y/y a month earlier).
“In construction and agriculture, growth has slowed, but a positive trend has been maintained,” the ministry said.
In April, real wages fell by 7.2% y/y (after rising 3.6% y/y in March).
At the same time, the official forecast of the Ministry of Economic Development of the Russian Federation (from mid -May) for the decline in Russia’s GDP in 2022 is 7.8%. But the ministry said the estimate could be changed downwards.
It was previously reported that by the end of 2022, Russia’s economy will decline by 15% and by another 3% in 2023. This will nullify the country’s 15-year economic growth.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.