The Russian economy is said to have contracted by 4% in the third quarter compared to last year's period. The National Statistics Agency Rosstat mentions this data. Does this figure also mean that if the economy in Russia has entered the recession stage.

The figure means that the economy in Russia entered the recession stage after the country's economy contracted 4.1% annually in the second quarter. The IMF, or International Monetary Fund, indicates that the Russian economy will contract by 3.4% at the end of 2022.

Meanwhile, the IMF indicates a Russian economy contract of 2.3% compared to the half-year period. Many associate this with Moscow's war on Ukraine. And several forcing acts have already been carried out; meanwhile, it could cripple its economy shortly.

On the other hand, major companies worldwide have announced the suspension of operations and withdrawal from Russia since the war began on 24 February. Annual terms this year indicate appropriate bartering and a 3-3.5% drop will return in the second half.

Russia Finally Falls into Recession After 8 Months of Series of Sanctions by Western

Russia's national statistics agency Rosstat released economic data Wednesday. GDP shrank second consecutive quarter, and meeting recession indicates that the drop that will exist later will become the second successive quarter. 

However, does this percentage match what was predicted? According to official data, Russia has entered a recession nine months after launching its offensive in Ukraine, as Western sanctions weigh on the economy. 

And Gross Domestic Product (GDP) meets the technical definition of a recession in two consecutive quarters. Russia's economy has been struggling with a myriad of problems. But recession is somehow very harmful for the country.

However, the sanctions imposed by Western parties have limited exports and imports, including crucial components for manufacturing needs and spare parts. However, the drop in the economic sector in Q3 has been well constructed.

Despite the economy entering a recession, Russia's unemployment rate stood at 3.9 percent in September, according to data published by Rosstat. Therefore, dependent upon energy exports indicates that the curvey suffered the impact of many restrictive policies.

The economy's resilience then becomes the reason for the central bank to move very drastically. The analyst believes things will get worse because Russia's economy has improved. 

Meanwhile, the effects of economic conditions have taken steps to support them. Seeing their impact, the global economy cannot be underestimated. Mainly because the government has already taken steps to support adaptation by the economy is coming to the reality.

Russia's War in Ukraine is the Biggest Culprit to Global Economy, But Russian Ruble Firms Near 60 vs. Dollar

Many parties believe the Ukraine and Russia wars greatly determine the global economy. In addition, Russia's economy will likely continue to drag down growth next year. That condition then pushed the world to face an economic output of $4 trillion.

"We judge the war in Ukraine because it is the most significant negative factor for the world economy this year. IMF's Managing director even said that this condition had created more anxiety and damaged the prospects for growth.

The FED will raise interest rates aggressively. The IMF said in October that Russia's economy would shrink for a second quarter. And this recession will then create domestic demand.

A downturn in this sector will later cause a GDP contraction and a global financial crisis with lower growth potential. Looming restrictions with clear industrial output create prospects, and multi-year conditions can make contracted grim. 

Russia's chances for revival are now increasingly complex, and this is happening because the Russian economy is shrinking and leading to recession. The relevancy to the culprit to global economy, Russian Ruble steady in near 60 rate vs US Dollar.