The government of the Russian Federation stated the acceleration of the fall of the economy

09:41 01 July Kyiv, Ukraine

The fall of the Russian economy, which began in April, accelerated in the third month of the war. According to the results of May, GDP decreased by 4.3% in annual terms - 1.5 times more than a month earlier, the Ministry of Economic Development reported.

2 months of recession destroyed almost all the growth shown by the economy in the first quarter, and the cumulative total for 5 months of the year, the result of GDP became almost zero (+0.5%).
“The main factors in the decline in GDP are still transport and logistics restrictions and a reduction in domestic demand,” states the Ministry of Economic Development.
Real wages are falling at a record low since 2015 (by 7.2% in April) , while the rate of decline in real terms is hitting records since 1999 - 8.3% in March, 8.8% in April and 8.2% in May .

Faced with falling incomes, people are tightening their belts as store prices rise at a rate unprecedented in 20 years. Retail trade turnover in May sank by 10.1%, even more than in April, when the decline was estimated at 9.8%.