Russian GDP contraction to total 2.9% by end of 2022, says minister

Finance Materials 5 December 2022 15:43
Moscow, Russia TASS
Russian GDP contraction to total 2.9% by end of 2022, says minister

Russia’s Economic Development Ministry expects the country’s GDP contraction at 2.9% this year, Minister Maksim Reshetnikov said at the opening of the Russia-Myanmar business forum on Monday.

"Russian GDP added 2.1% in September in monthly terms. While most foreign experts expected the Russian economy to lose from 8% to 10%, we expect Russia’s GDP contraction at 2.9% by the end of 2022," he said.

Inflation in the country is slowing down as it currently stands at 12% in annual terms, whereas the average three-month inflation equals less than 3% per year, the minister added.

According to preliminary figures provided by the national statistics service Rosstat, Russia’s GDP contraction amounted to 1.7% in January-September 2022 year-on-year. Earlier, Rosstat preliminarily estimated Russia’s GDP contraction at 4% in Q3 in annual terms.

Reshetnikov said in October that the outlook drafted by the ministry, which the federal budget is based on, suggested an accelerated adjustment of the economy to new conditions, which would allow passing the phase of structural transformation and reaching stable economic growth as early as in 2024. The Economic Development Ministry projects Russia’s GDP contraction at 0.8% for 2023.