Russia's economy has entered a recession as gross domestic output fell by four percent in the third quarter, according to first estimates published Wednesday by the national statistics agency, Rosstat.
The drop in GDP follows a similar four percent contraction in the second quarter, as Western sanctions pummel Russia's economy following Moscow's offensive in Ukraine.
The four percent drop in economic output between July and September was less than the 4.5 percent contraction analysts had expected.
The contraction was driven by a 22.6 percent plunge in wholesale trade and a 9.1 percent drop in retail trade.
A recession is commonly defined as two consecutive quarters of economic contraction, and Russia last experienced a technical recession in late 2020 and early 2021 as the world was going through the coronavirus pandemic.
The central bank is not planning to change the rate until the end of the year, a sign of "adaptation" to a "new reality," said Bank of Russia governor Elvira Nabiullina.
After Russia was hit by Western sanctions over the Ukraine offensive, the bank drastically raised the key rate from 9.5 percent to 20 percent in a bid to counter inflation and prop up the ruble. »
