The sanctions have hit Moscow hard.
(Photo: dpa)
The sanctions against Russia in response to the invasion of Ukraine could plunge the country into one of the biggest economic downturns in nearly three decades. According to an internal forecast by the Moscow Ministry of Finance, the gross domestic product threatens to shrink by up to twelve percent this year.
The Russian government has not yet presented an official estimate of this year’s economic development. The ministry in Moscow, meanwhile, assumes a decrease of only eight percent.
The last time there was comparable economic damage was in the early 1990s. Back then, Russia’s economy was teetering from the Soviet era toward capitalism, in a recession unseen since World War II.
The national central bank, on the other hand, is more optimistic than the ministry in Moscow and is forecasting a decline in gross domestic product of eight to ten percent this year. The International Monetary Fund expects a decline of 8.5 percent. A Bloomberg survey of economists gave a median expectation of a 10.3 percent slump.
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