Russia’s GDP Plunges 4.6%

I think Russia believed its own propaganda about Western weakness. And I think the analysis in the west decided to avoid military confrontation and correctly estimated that Russia will break first.

Gross domestic product contracted 4.6 percent in the second quarter from a year earlier after a 2.2 percent decline in the previous three months, the Federal Statistics Service in Moscow said on Monday, citing preliminary data. That was worse than the median forecast for a 4.5 percent slump in a Bloomberg survey of 18 analysts. The Economy Ministry had projected that output shrank 4.4 percent in the period, calling it “the lowest point” for Russia.