Russia's Economy Enters Recession After Renewed Contractions

The Russian Federal State Statistics Service (Rosstat) reported that the Russian economy contracted by 4% in the third quarter of 2022 compared to the third quarter of 2021 (year-on-year/yoy).

This contraction officially puts Russia in a recession. This is because the country's economy also contracted by 4.1% (yoy) in the previous quarter.

An economy is considered to be in recession after experiencing two or more consecutive quarters of contraction.

Sanctions imposed by Western countries on Russia due to its invasion of Ukraine have impacted the economy led by President Putin. Restrictions on import and export activities, along with supply chain issues for spare parts, have burdened the Russian economy.

Previously, Russia also experienced a recession as a result of the COVID-19 pandemic, which began in early 2020. The country's economy contracted for four consecutive quarters, from the second quarter of 2020 to the first quarter of 2021.

Here is an overview of Russia's macroeconomic indicators as of October 2022:

* Headline inflation: 12.6% (yoy)
* Food inflation: 12.1%
* Central bank interest rate: 7.5%
* Consumer confidence: -22 points
* Business confidence: -3 points