The Russian economy contracted by 1.9% in annual terms in the first quarter of 2023, according to Rosstat data. Last year, there was growth of 3% for the same period, which did not meet the initial expectations of a double-digit collapse. However, after the West imposed sanctions, it contracted by 2.1%. In May, the Ministry of Economy calculated the GDP results for the first quarter and reported that gross domestic product decreased by 2.2%. This is already better than the forecast, as the Central Bank predicted a decrease of 2.3%. It is also the best result compared to the fourth quarter of last year, when GDP fell by 2.7%, according to Rosstat. In the first quarter, the decline in GDP was caused by a decrease in retail and wholesale turnover. Nevertheless, against the backdrop of a decrease in turnover, agriculture, construction, and manufacturing were among the sectors that showed record growth. The IMF - International Monetary Fund - is still among those who predict economic growth in 2023. But it takes into account that global isolation and a decrease in energy revenues will weaken Russia's economic growth prospects in the coming years. And the impact of sanctions is being mitigated by the growth of military production and huge government spending.