Markets News

Russia reduces assessment of Q2 GDP contraction to 8% yr/yr

MOSCOW, Sept 9 (Reuters) - Russia’s economy shrank by 8% in year-on-year terms in the second quarter, showing a smaller than previously reported contraction amid the novel coronavirus pandemic, the Federal Statistics Service said in a second GDP reading on Wednesday.

The service Rosstat had earlier seen gross domestic product shrinking by 8.5% in the second quarter after 1.6% growth in the first three months of 2020.

The Russian economy slid into contraction this year as the coronavirus outbreak paralysed business activity, prompting the central bank to slash interest rates to a record low, while a drop in global oil prices dented Russia’s government revenues.

Rosstat said it revised the second-quarter figure after obtaining extra data from the central bank and revised financial reports from companies, adding that it may revise the second-quarter GDP figure again in the future. (Reporting by Andrey Ostroukh; Editing by Hugh Lawson)