This comes after it recorded in the second quarter a decrease of 4. 1 percent, and the decrease dates back to the effects of the severe Western sanctions imposed in the wake of the Ukraine crisis.
Analysts had expected a noticeable decline in the economy between July and September, approximately 4. 5 percent.
According to “Rostat”, wholesale trade (-22. 6 percent), retail (-9. 1 percent), as well as shipping (-5. 5 percent) and the manufacturing (-2 percent) led to the decline in economic activity.
In contrast, the construction (+6. 7 percent) and agriculture (+6. 2 percent) showed well.
The last recession in Russia dates back to 2020 and early 2021, two years that witnessed the Kofid-19 pandemic.
The first three months of 2022 witnessed the growth of Russian GDP by 3.
5 percent, but the start of the Ukraine crisis at the end of February led to international sanctions and many problems for the Russian economy, the most prominent of which is the decline of imports and exports, the exacerbation of workforce and difficulties in supplying spare parts.
The Russian Ministry of Economy expects a decrease in GDP by 2. 9 percent this year, while the central bank expects a 3-3. 5 percent decrease before returning to growth in the second half of 2023.
According to the expectations of the Russian Central Bank on November 8, the GDP is expected to shrink by about 3. 5 percent over the past 2022, a rating far from the dark expectations that were expected in the spring.
At the end of October 2022, the Russian Central Bank kept the main interest rate at 7. 5 percent, an expected measure aimed at supporting the economy in the face of the global trend of high borrowing costs..
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