OREANDA-NEWS. August 12, 2009.  Russia’s economy shrank 10.9% y-o-y in 2Q 2009, the Federal State Statistics Service reported its initial estimate, reported the press-centre of FINAM.

EDM attributes the ongoing downturn to deterioration in domestic demand – investment activity, end consumption, with shrinking inventories. The Federal State Statistics Service has not yet released the structure of demand in the second quarter.

Investments dropped 3.2% in the second quarter, end consumption declined 1.5%, net exports rose 7.6% (actual volumes of exports sank by just 4.5%, while imports fell much more), Mironov calculated. In order to have a total decline of 10.9%, inventories should contribute a 13.9% decline in GDP.