In the first quarter of this year, the Russian economy fell by 1.9 percent year-on-year. In the same period last year, the gross domestic product increased by three percent, having fallen by 2.7 percent in the previous quarter. This follows from data published by the Russian statistical office Rosstat.
The decline in the first quarter was caused by lower turnover of retailers and wholesalers of goods. On the contrary, growth was recorded in the processing industry, agriculture and construction.
Sanctioned goods are lost in Russia en route to post-Soviet republics
The European Union’s trade volume with Kazakhstan, Kyrgyzstan and Armenia skyrocketed after the Russian invasion of Ukraine. However, it seems that this is only a way to get goods to Russia that are subject to Western sanctions. Goods destined for these post-Soviet republics are mysteriously “lost” on the way through Russia.
The figure is slightly more favorable than the estimate of the Russian Ministry of Economy from the beginning of this month. It said GDP fell by 2.2 percent. The central bank had expected a decline of 2.3 percent.
The reason for the decline was Western sanctions
The Russian economy defied initial expectations of a double-digit percentage decline and GDP decreased by only 2.1 percent last year. The reason for the decrease was the sanctions of Western countries in response to Moscow’s invasion of Ukraine.
The International Monetary Fund (IMF) is among the organizations that predict moderate growth for the Russian economy this year. GDP is expected to increase by 0.7 percent, according to the fund’s latest estimate. However, global isolation and lower energy revenues will dampen Russia’s economic growth in the coming years, according to the IMF. In mid-April, the Ministry of Economy estimated that GDP will rise by 1.2 percent this year, and next year the growth rate is expected to accelerate to two percent.
Industrial production in Russia is growing. Heals on “finished metal products”
Industrial production in Russia in March showed the first year-on-year increase in the last year. Russia’s statistics office reported that production increased by 1.2 percent. At the same time, analysts in a Bloomberg survey predicted that production would show a decline of 1.4 percent.
Lukáš Kovanda: The effect of Western sanctions against Russia will appear in maybe five years
The Czech economy may turn out worse this year than the Russian one. No, this is not Kremlin propaganda. This is the conclusion of the forecasts of Western institutions and banks led by the International Monetary Fund (IMF), writes economist Lukáš Kovanda.
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2023-05-17 17:09:00