The Ministry of Economic Development estimated the decline in Russia’s GDP for seven months at 1.1%

The decline in Russia’s GDP in January-July 2022 amounted to 1.1%, according to the published review of the Ministry of Economic Development “On the current situation in the economy”.

In January-July 2022, the economy contracted by 1.1% year-on-year, while in July economic activity was supported by continued growth in the extractive industry and positive dynamics in agriculture, as well as a significant improvement in construction indicators, the report says.

“According to the Ministry of Economic Development, in July, the decline in GDP slowed to 4.3% yoy after 4.9% yoy in June and 4% yoy in the second quarter of 2022,” the document explained.

Director of the Department of Macroeconomic Analysis and Forecasting of the Ministry of Economic Development Ekaterina Vlasova, in turn, notedthat the positive dynamics in the second quarter gives reason to adjust the forecast for investment in fixed assets for 2022 in the direction of reducing the likely decline.

Rosstat earlier today reported a 0.4% decline in GDP in the first half of the year. According to the latest assessment of the department, in the second quarter of 2022, the decline in the Russian economy amounted to 4%, in the first quarter, an increase of 3.5% was recorded.

At the end of July, the Ministry of Economic Development estimated the decline in Russia’s GDP in the II quarter at 4% compared to the same period last year, and for the first half of the year – at 0.5%. According to the Minister of Economic Development Maxim Reshetnikov, the overall situation is better than predicted in the spring.

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