Russian GDP fell in the first quarter of 2023

Due diligence service bulletin in Vietnam – The Russian Federal Statistical Service announced that Russia’s GDP decreased by 1.9% in the first quarter compared to the same period in 2022.

This quarter’s decline was mainly due to low retail and wholesale sales.

The manufacturing, agriculture and construction sectors recorded record growth, still according to information from Rosstat.

In the first quarter of 2022, the economy grew by 3%.

Inflation in March 2023 was only 3.5% and continued to decrease to 2.3% in April.

The unemployment rate is currently low at 3.5%, but mainly due to a shrinking labor force.

Russia’s Economy Ministry estimates GDP will shrink by 2.2% in the first quarter. The Central Bank of Russia forecasts this figure to be 2.3%.

The Russian economy did not collapse as expected, but GDP still fell 2%.

Western sanctions against Russia due to Russia’s war in Ukraine, have caused a lot of damage to this country.

The IMF forecasts Russia’s growth in 2023.

The IMF also warned that isolation and reduced energy revenues could hurt Russia’s economic growth.

While Russia’s crude exports are now at their highest levels since the start of the war, oil revenues are down 43 percent year-on-year, the IEA said.

Russia ran a deficit of 3.4 trillion rubles ($42.3 billion) in the first four months of the year.

Experts forecast Russia’s budget deficit could equal 3-4% of GDP this year, higher than the target of 2%.

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