GDP growth slipped to 3.5%, missing median forecast of 3.7%
Economy heads into deep recession amid sanctions over Ukraine
Russia’s economic growth slowed in the first quarter, as the initial impact of sanctions imposed following President Vladimir Putin’s invasion of Ukraine began to show up.
Gross domestic product rose 3.5% from a year ago, down from a gain of 4% in the previous three months, the Federal Statistics Service said Wednesday, citing preliminary numbers. That was less than the median forecast of economists polled by Bloomberg for an increase of 3.7%, which matched an estimate from the Economy Ministry.
Mining, which includes oil and gas, helped drive the growth with an 8.5% increase, while manufacturing was up 5.1%. Farm output increased only 1.9%, while retail sales were up 3.5%.
Most of the latest results were recorded before Putin sent troops into Ukraine on Feb. 24, triggering sweeping sanctions from the U.S. and its allies.
Those restrictions, which hit major Russian financial institutions and companies and prompted an exodus of foreign firms, are expected to trigger a deep recession in Russia, with the economy contracting as much as 10% this year, according to the central bank.
What Bloomberg Economics Says:
Sputtering growth in the first quarter will give way to a deep plunge in output in the second. So far, though, sanctions look to be inflicting a gradual breakdown rather than a sudden stop in activity.
–Scott Johnson, Russia economist
Softening consumer demand has helped bring down inflation, which spiked in the aftermath of the invasion. In the seven days ended May 13, weekly price growth eased to just 0.05%, the slowest pace since last September, the statistics service, also known as Rosstat, said in a separate report Wednesday.
Wonder why
Not like the rest of Europe is thriving. I dunno about where others live, but Romania’s going downhill too, and fast.
So it begins.
Get Hungary and Greece onboard for oil sanctions and Russian economy is toast.
I wonder why
LOL:
>Gross domestic product rose 3.5% from a year ago, down from a gain of 4% in the previous three months, the Federal Statistics Service said Wednesday, citing preliminary numbers. That was less than the median forecast of economists polled by Bloomberg for an increase of 3.7%, which matched an estimate from the Economy Ministry.
Kinda different from the headline which seems to be squealing about a 0.2% difference from “the median forecast of *economists polled by Bloomberg*”. The reference to “median” presumably means that some of these same polled economists were forecasting either side of the median number, and yet its apparently Russia’s fault that growth didn’t match Bloomberg’s “medium”.
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GDP growth slipped to 3.5%, missing median forecast of 3.7%
Economy heads into deep recession amid sanctions over Ukraine
Russia’s economic growth slowed in the first quarter, as the initial impact of sanctions imposed following President Vladimir Putin’s invasion of Ukraine began to show up.
Gross domestic product rose 3.5% from a year ago, down from a gain of 4% in the previous three months, the Federal Statistics Service said Wednesday, citing preliminary numbers. That was less than the median forecast of economists polled by Bloomberg for an increase of 3.7%, which matched an estimate from the Economy Ministry.
Mining, which includes oil and gas, helped drive the growth with an 8.5% increase, while manufacturing was up 5.1%. Farm output increased only 1.9%, while retail sales were up 3.5%.
Most of the latest results were recorded before Putin sent troops into Ukraine on Feb. 24, triggering sweeping sanctions from the U.S. and its allies.
Those restrictions, which hit major Russian financial institutions and companies and prompted an exodus of foreign firms, are expected to trigger a deep recession in Russia, with the economy contracting as much as 10% this year, according to the central bank.
What Bloomberg Economics Says:
Sputtering growth in the first quarter will give way to a deep plunge in output in the second. So far, though, sanctions look to be inflicting a gradual breakdown rather than a sudden stop in activity.
–Scott Johnson, Russia economist
Softening consumer demand has helped bring down inflation, which spiked in the aftermath of the invasion. In the seven days ended May 13, weekly price growth eased to just 0.05%, the slowest pace since last September, the statistics service, also known as Rosstat, said in a separate report Wednesday.
Wonder why
Not like the rest of Europe is thriving. I dunno about where others live, but Romania’s going downhill too, and fast.
So it begins.
Get Hungary and Greece onboard for oil sanctions and Russian economy is toast.
I wonder why
LOL:
>Gross domestic product rose 3.5% from a year ago, down from a gain of 4% in the previous three months, the Federal Statistics Service said Wednesday, citing preliminary numbers. That was less than the median forecast of economists polled by Bloomberg for an increase of 3.7%, which matched an estimate from the Economy Ministry.
Kinda different from the headline which seems to be squealing about a 0.2% difference from “the median forecast of *economists polled by Bloomberg*”. The reference to “median” presumably means that some of these same polled economists were forecasting either side of the median number, and yet its apparently Russia’s fault that growth didn’t match Bloomberg’s “medium”.