According to the Institute of International Finance (IIF), Russia is expected to lose 15 years of economic growth by the end of next year due to the invasion of Ukraine. The background is that many sanctions have been imposed and many companies have withdrawn from Russia.
IIF economists Benjamin Hillgenstock and Elina Ribakova conducted an initial analysis of the effects of the war and predicted Russia’s economic growth rate of -15% this year and -3% next year. As a result, gross domestic product (GDP) will fall to the level of 15 years ago. The two men said additional sanctions could change expectations.
The IIF pointed out that Russia’s economy will suffer for several years from “brain drain” even after the immediate blow has passed. He also said that technology export restrictions in Europe and the United States would impair technology development in Russia over the long term.
Hard Hit
Russian economy seen shrinking 15% this year over the war
Source: Statistics Service, Institute of International Finance for 2022-2023 forecasts
Original title:Putin’s War Seen Wiping Out 15 Years of Russian Economic Growth(excerpt)