Russia’s economy shrinks significantly in Q2

MOSCOW: The Russian economy shrank significantly in the spring as a result of the Western sanctions, according to official figures released in Moscow.

Gross domestic product (GDP) fell by 4.0 per cent in the period from April to June compared to the corresponding quarter of the previous year, dpa news agency quoted the national statistics office as saying on Friday.

Economists had expected a sharper decline of 4.7 per cent.

Economic output has thus fallen back to the level of 2018.

The second quarter was the first which has been completely shaped by the war against Ukraine that began on February 24.

As a result, Western countries in particular decided on far-reaching sanctions against Moscow.

In the winter quarter, the Russian economy grew by 3.5 per cent.

The Russian central bank recently forecast a 7.0 per cent decline in economic output for the third quarter.

The decline could be even greater in the final quarter.