Russian economy contracts 1.9% in Q1

Russia's gross domestic product shrank by 1.9 per cent in the first quarter of 2023, the country's statistics agency Rosstat said Wednesday.

The economy was weighed down by another wave of sanctions imposed over its offensive in Ukraine, including a ban by the European Union on Russian petroleum products, on top of a price cap agreed with the Group of Seven and Australia.

According to Capital Economics, an independent London-based think tank, this contraction is "smaller-than-expected", which "suggests that the economy has turned a corner and that growth accelerated."