- It is reported that the business activity dynamics in the third quarter evolved better than expected before
According to TASS, Russia's state-owned news agency article published on November 8, 2022, the gross domestic product (GDP) of Russia will contract by 4% annually in the third quarter of this year and by about 7.1% in the fourth quarter, the Central Bank said in its monetary policy report.
According to the updated base case, the GDP will tumble 3-3.5% in 2022, while the influence of supply shocks can be more prolonged. The economy will contract by 1-4% in 2023, the regulator predicts.
The business activity dynamics in the third quarter evolved better than expected before. "Industrial output dynamics, construction and retail sales and the activity in the agricultural sector where the record-high harvest is expected supported the output," the Bank of Russia said.
Flash indicators at the same time highlight the decline in economic activity in September, the regulator informed. "The main reason is growing uncertainty amid intensified geopolitical strain and partial mobilization. Estimates of the business climate indicator of the Bank of Russia worsened in all major sectors. Consumer activity remains moderate," the Central Bank added.
