MOSCOW (Reuters) – Russia’s economy shrank 4% year-on-year in the third quarter of 2022, data from the Rosstat federal statistics service showed on Wednesday, as the consequences of the country’s military actions in Ukraine continued to weigh on the economy.
That was a slight improvement from the second quarter, when gross domestic product (GDP) fell by 4.1% year-on-year as Western sanctions began to take a toll on Russia’s finances and wider economy.
Russia deployed tens of thousands of troops to Ukraine on Feb. 24 in what Moscow calls a “special military operation.” Before the full effects of sanctions had been felt, the Russian economy grew 3.5% in annual terms in the first quarter.
Russia’s economy ministry sees GDP falling by 2.9% this year, while the central bank expects a 3-3.5% drop before a return to growth in the second half of 2023.
(Reporting by Darya Korsunskaya; Editing by Mark Potter)