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Economics

Russia Economy Shrinks for Second Quarter With Worst Yet to Come

  • Economy slumped 4% in third quarter amid war and sanctions
  • Analysts now see the worst of Russia’s crisis at start of 2023
Updated on

Russia’s economy shrank for a second quarter as the shock of sanctions over the Kremlin’s invasion of Ukraine disrupted trade and upended domestic demand, with the worst of the downturn likely early next year.

Gross domestic product fell an annual 4% in the third quarter, in line with the central bank’s estimate but faring better than every forecast in a Bloomberg survey of analysts. It follows a drop of 4% in the prior three months, in what was Russia’s first GDP contraction in over a year.