The main reason for the more subtle recession in the Russian economy was the growth in oil production, which partially offset the impact of the sanctions.
Russia has avoided the worst recession despite forecasts and the fact that the country’s economy is experiencing the worst recession since 2009. Bloomberg reported this on July 6th.
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It was noted that the main reason for the more subtle recession was the growth in oil production and exports, which weakened the impact of US and European sanctions in response to the war in Ukraine.
Economists at JPMorgan Chase & Co., Citigroup Inc. and other large banks have lowered their forecasts for a collapse in Russian production in 2022, dispelling fears of the “deepest recession of a generation” that emerged in the first months after the Russian army’s invasion of Ukrainian territory.
“Russia is in a milder recession than expected when the aggression began,” said JPMorgan, which cut the expected decline from 7% to 3.5%.
Citigroup Inc corrected the decline from 9.6% to 5.5%.
Analysts have noticed that the Russian industry is actually experiencing a serious decline against the backdrop of sanctions, but the scale of the recession is more contained due to measures to stabilize the ruble and large volumes of revenue. -export.
Russia’s economy is positively affected by rising energy prices on world markets.
At the same time, risks for Russia’s economy remain, as the pressure of sanctions is gradually building up.
Earlier, the head of European diplomacy Josep Borrell assured that EU sanctions would hit Russian President Vladimir Putin and his entourage hard, and that its impact on Russia’s economy would increase.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.