If in the first quarter of the year there was an economic growth of 3.5% compared to the same period last year, then in the second quarter, the GDP decreased by more than 4%.
In the second quarter, Russia’s real GDP fell by 4.1% year-on-year, while in the first quarter it increased by 3.5%. Data from the first detailed economic analysis for this period, conducted by Rosstat, reports RBC.
It was noted that the leaders of the decrease were the wholesale and retail trade sectors (minus 14.1% compared to the same period in 2021), the utility sector (water supply, waste disposal, etc.) – minus 9.2%, transportation and storage – minus 3.9 %, which may be caused, among other things, by the decrease in Gazprom’s pipeline gas supplies to Europe.
Growth was shown by agriculture (1.7%), construction by (3.4%). financial and insurance sector (4.4%).
The sector of public administration, social security and military security, which includes, among other things, the management, control and regulation of issues related to defense and the activities of the Armed Forces, grew by 1.1%.
As explained by Rosstat, “among the main reasons for the decrease in the physical volume of GDP is the decrease in consumer demand and the pressure of sanctions.”
Recall that in April the Central Bank of Russia predicted that by the end of 2022, inflation would be 18-23%, and Russia’s GDP would decrease by 8-10%.
The media analyzed the consequences of the war for the Russian economy
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.