Russia has finally entered into a phase of recession, just nine months since it launched the most offensive invasion of Ukraine.
The news comes as Western sanctions hit an all-time high and finally take a toll on the economy. But the news is definitely being called out as a long time coming.
Most Western nations who supported Ukraine had put sanctions ever since the war began back in February but seeing it finally unfold before their eyes, around nine months later, was definitely a major turn-off for obvious reasons.
The country’s GDP shrank by around 4% in Q3 of 2022 and then we saw a preliminary estimate speak about the preliminary statistics agency Rosstat.
After that follows, it was one of the same sizes in Q2 and now, Russia is meeting its technical definition of recession with two consecutive quarters related to falling GDP.
Then, Russia’s economy was seen struggling under a major myriad of huge problems. This had to do with a small number of imports and exports taking center stage. And that meant no foreign currency entering the nation.
Then we saw so many countries suffering from a lack of staff as Putin’s partial mobilization took a few hundred thousand men out of the workforce.
For those who may not be aware, the current definitely of recession is defined as two consecutive quarters comprising failing GDP. Moreover, we saw Russia’s economy struggle under a series of major problems.
While all other sectors saw a massive decline in profits, there was one outlined to have a little bit of an edge over the rest. This was construction and it was seen that the rest of the economy was in shambles.
But despite this news, Russia is still keen on making business with other nations, such as those far from the west and that is what will drive in more revenue soon.