- This content was created in Russia, where legislation restricts reporting on Russian military operations in Ukraine
MOSCOW, Nov 30 (Reuters) – Russia’s economy shrank 1.7% year-on-year from January to September, but capital investment, one of the main drivers of economic growth, rose 5.9% over the same period, data showed data from the federal statistical service Rosstat. on Wednesday.
The export-dependent economy has weathered the impact of sweeping Western sanctions better than initially expected, although the government still has to contend with falling real wages, falling retail sales and rising inflation.
The Economy Ministry expects Russia’s gross domestic product (GDP) to fall 2.9% this year, a far cry from early speculation that the economy could be hit by sanctions imposed in response to what Moscow calls its “special military operation”, reduced by as much as 12%. “in Ukraine.
Capital investment rose 5.9% year-on-year to 16.418 trillion rubles ($271.65 billion) between January and September, Rosstat said.
Official unemployment remained at 3.9% in October, just above August’s record low of 3.8%, Rosstat data showed on Wednesday, but inflation-adjusted real wages fell 1.4% year-on-year in September.
The data also showed that retail sales, a measure of consumer demand, fell 9.7% year-on-year in October, following a 9.8% drop in the previous month.
All this comes as consumer prices rose for a 10th straight week, which may have caused the central bank to reconsider. The Bank of Russia is expected to keep its key interest rate unchanged at 7.5% when its governing board meets on December 16.
($1 = 60.4390 rubles)
Alexander Marrow and Darya Korsunskaya report; Editing: Mark Trevelyan
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