Russia’s GDP fell by 4.3% in May as domestic demand declined

According to the Russian Ministry of Economic Development on Wednesday (June 30), Russia’s gross domestic product (GDP) fell by 4.3% in May 2022.

The report said that the main factor behind the contraction of the Russian economy in May was the restrictions in the transport and logistics sector, as well as the decline in domestic demand.

Earlier this month, the International Financial Institute (IIF) forecast that the Russian economy will shrink by 15% this year and 3% next year, due to the impact of Western sanctions against Russia.

Including the fact that foreign companies withdrew their business from Russia, quality personnel problems left the country and exports slumped, which will completely wipe out Russia’s 15-year growth.

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