Russia's economy shrank for the second consecutive quarter as it continued to feel the impact of Western sanctions imposed in response to its invasion of Ukraine.

The Russian federal statistics service said gross domestic product shrank 4 percent year-on-year in the July-September period.

And the state-run Tass news agency said the contraction was driven by a slump in wholesale trade of 22.6 percent. Other key numbers included a 9.1 percent fall in retail commerce and a 5.5 percent decline in cargo transportation trade.

It also said international businesses pulling out of Russia in the wake of the sanctions, and a fall in personal consumption have hurt the economy.

On a more positive note, construction increased 6.7 percent and agriculture was up 6.2 percent.

Russia's central bank estimated last month that the economy would shrink by 3 to 3.5 percent this year, but would begin to recover in the latter half of 2023.