Latest News by Industry
Russia’s economy has begun to feel the heat of the crippling sanctions imposed by the West after Russian President Vladimir Putin gave out orders to invade Ukraine.
Russia’s manufacturing activity has dropped to its lowest rate since May 2020, when the world was battling the first wave of the COVID-19 pandemic.
Last week, the European Bank for Reconstruction and Development (EBRD), projected a 10% shrinkage in the Russian economy, resulting in the country’s deepest recession in almost 30 years.
CNBC reported that the Russian gross domestic product (GDP) would flatline in 2023 and enter a prolonged period of negligible growth.
“Sanctions on Russia are expected to remain for the foreseeable future, condemning the Russian economy to stagnation in 2023, with negative spillovers for a number of neighboring countries in eastern Europe, the Caucasus, and Central Asia,” the EBRD said.
“With so much uncertainty, the bank intends to produce a further forecast in the next couple of months, taking into account further developments,” added the London-based lender.
CNBC reported that economists at Capital Economics projected the fall in Russia’s GDP as 12% in 2022 due to Western sanctions. Its estimate for inflation is expected to exceed 23% year-on-year.
(With inputs from CNBC)