The Russian government estimates that the Russian economy will contract by 2.9% this year and by 0.9% in 2023 due to Western sanctions, Economic Development Minister Maxim Reshetnikov indicated today.

"The Russian economy is adequately coping with the pressure of sanctions. We expect a GDP [Gross Domestic Product] setback of 2.9% this year, which is significantly lower than the March-April estimates," Reshetnikov said on the sidelines of the 7th Eastern Economic Forum in Vladivosok.

The minister predicted an upturn in the growth of the Russian economy as early as the end of this year or early next year, but warned that due to the high base in early 2022, GDP will still remain in the 'red' in 2023, the official TASS news agency reports.

In the first quarter of this year, Russian GDP grew by 3.5%. In the second it has already fallen by 4%, as a result of the impact of the unprecedented sanctions imposed by the West on Russia due to the military intervention in Ukraine.

Thus, Russia is expected to enter a technical recession in the third quarter of this year.

Reshetnikov also pointed out that from 2024 onwards, the Russian economy will improve continuously and will reach a growth rate of 2.6% in that year, to follow an upward path thereafter, with increases of approximately 3%. (News to the Minute)