Russian economy could shrink by 7% as result of Ukraine sanctions | Russia
Russia’s economy is expected to plunge into a deeper recession than the one caused by Covid-19 as a result of western sanctions and the country’s increasing isolation after invading Ukraine.
Economists said measures imposed on Russian banks and companies by the US, EU, UK and their allies were having a severe impact on financial markets in Moscow and would inflict more damage on Russia’s wider economy over time.
With tougher sanctions under consideration in western capitals as Vladimir Putin gathers troops closer to the Ukrainian capital, Kyiv, after a week of conflict, analysts at Goldman Sachs said the investment bank had cut its forecast for Russian gross domestic product this year from 2% growth to a 7% decline.
Russia’s economy was estimated to have grown by 4.5% last year after having shrunk by almost 3% in 2020, the worst year of the pandemic for the global economy.
Analysts said the Ukraine war may have a limited impact…
