After the Russian invasion of Ukraine, the developed world hit Russia with serious sanctions, which almost immediately dealt a very serious blow to the Russian economy. It is clear from the microeconomic data and second-quarter GDP that the Russian economy has been seriously damaged in a short period, and that Russian economic policy planning itself is clearly pessimistic about the outlook for the economy,
For some reason, it is still said daily that sanctions against the Russian economy are not working.
To refute this, the European Commission has published staggering numbers on Facebook showing general data and forecasts for the Russian economy.
The numbers include, among other things, that
- The Russian economy is expected to decline by 11.2% this year, and no recovery is expected in two years (the Commission’s figure does not include this, but even the most optimistic estimates predict a deep drop in GDP of about 5%),
- Imports could drop 35% and exports 31% this year,
- 50% of the Central Bank’s reserves are inaccessible, 75% of the Russian financial sector is paralyzed due to sanctions,
- Companies that produce 40% of the country’s GDP have withdrawn,
- Consumption may drop by 8.5% this year.
Cover Photo: Getty Images
