The Russian economy entered a recession: GDP fell 4% in the third quarter

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The decline in Russian finances between July and September reflects the impact of Western sanctions following the invasion of Ukraine

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The Russian economy entered a recession: GDP fell 4% in the third quarter

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Russia officially entered recession after a 4% drop in its GDP in the third quarter of this year, according to an initial assessment by the Russian statistics agency Rostat published on Wednesday.

The decline in the GDP between July and September, which followed a trend similar to that of the second quarter (-4.1%), reflected the impact of the sanctionsagainst Russia, applied after the military intervention of the Russian army in Ukraine.

Analysts, however, expected a drop GDP, around 4.5%.

This recession was caused by the decrease in wholesale trade (-22.6%), retail trade < /b>(-9.1%), freight (-5.5%) and the manufacturing industry (-2%).

In contrast, the construction and agricultural sectors grew by 6.7% and 6.2%, respectively.

Russia had already suffered an economic recession between 2020 and early 2021 due to the pandemic of covid-19.

Its GDP increased by 3. 5% in the first quarter of 2022, but the start of the Russian offensive in Ukraine on February 24 led to a wave of sanctions that weakened the country's economy.

The Russian Central BankIt expects GDP to fall by 3.5% in 2022 as a whole, which would represent a significant setback, but much less than the catastrophic forecasts made in March and April when the sanctions were announced, according to its latest forecasts of November 8.

The Russian economy entered a recession: GDP fell 4% in the third quarter

The Russian Central Bank

TheIMF and the World Bank also forecast a similar recession for the Russian economy, of -3.4% and – 4.5% respectively.

Meanwhile, the Secretary General of the North Atlantic Treaty Organization, (NATO), Jens Stoltenberg, assured this Wednesday that “there are no indications of a deliberate attack” on Poland, after the explosion of a missile that killed two people in a town near the Ukrainian border.

Stoltenberg, said the explosion in Poland was likely the result of&nbsp ;Ukrainian flak, but that Russia bears “ultimate responsibility” for the war.

“An investigation is underway into this incident and we must await its outcome… But we have no indication that it was the result of a deliberate attack,” Stoltenberg said after chairing a meeting of NATO ambassadors.

“Our preliminary analysis suggests that the incident was likely caused by a Ukrainian air defense missile fired to defend Ukrainian territory against missile attacks from Russian cruisers,” he added.

“But let me be clear, this is not Ukraine's fault,” he continued.

“Russia bears ultimate responsibility as it continues its illegal war against Ukraine,” the NATO chief said.

Russia launched a wave of attacks with missiles at Ukraine on Tuesday, while insisting it is not to blame for the explosion on Polish soil that sparked fears the conflict could escalate.

Poland called the  emergency NATO meeting in Brussels, prompting concerns that NATO allies may be moving closer to an open confrontation with Russia.

But the Poland's own president, Andrzej Duda, also said of the blast, which killed two people in a Polish village near the Ukrainian border, that it was “most likely a rocket used in missile defense, which means it was used by the Ukrainian defense forces.”

(With information from AFP)

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