Page 50 - RusRPTAug22

segment was more sustainable with only 2.1% y/y decline,” Lavrova added.
Uncertainty remains high. Released macro data still reflects the fragility of the current economic situation and for now, cannot be viewed as an indication of low damage to the economy. Consumer demand has remained under pressure, while industry’s performance is still uneven – export-oriented and import-dependent industries, such as chemical production, and automotive industry are hit the hardest by sanctions pressure. In general, the trend in the real economy reinforces the dependence of the Russian economy on commodities – it makes the growth prospects more dependent on state projects and also implies that the headline figure is becoming less indicative to interpret the recovery process in the economy
Russia’s GDP growth hit an all-time high in 1Q22, in terms of 2016 prices, but growth is expected to fade slowly as the long-term effects of sanctions take their toll as the year wears on.
The growth of Russia’s seasonally adjusted gross domestic product in the first quarter of the year was 0.5% from the previous quarter, according to recent data from the Russian Statistics Authority.
In the last quarter of 2021, seasonally adjusted growth was still 1.4%. Private consumption increased by 0.5%, while the change in public consumption from the previous quarter was zero.
Capital formation in the economy shrank by as much as 1.4%, the weaker development has been in recent years only in the second quarter of 2020 when the pandemic hit Russia.
50 RUSSIA Country Report October 2020 www.intellinews.com