The Institute of International Finance (IIF) has updated its forecasts for the Russian economy and now forecasts a 15% contraction in the country’s Gross Domestic Product (GDP) this year, followed by 3% in 2023. In a report on the country, the institute underlines that this situation, which brings together hundreds of international banks, will lead to the loss of 15 years of economic gains in Russia, which has attacked Ukraine militarily and has been the target of various international sanctions due to the war.
The exit of foreign companies and the worsening economic outlook are expected to result in a sharp 25% drop in private investment, IIF said.
He calculates that private consumption should fall by 18% compared to the situation before the war, predicting a 28% decrease in imports and a 25% decrease in the country’s exports.
He warned that with the Russian oil embargo announced by the European Union, the outcome of exports could be even worse.
According to the IIF, retaliatory sanctions from Russia will further damage its external balance, but the institute sees the Russian government’s willingness to “not be underestimated” in increasing the economic cost to countries that impose such sanctions.
source: Noticias
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