Russia's Economy Facing Worst Contraction Since 1994
(Bloomberg) -- Russia is facing the deepest economic contraction in nearly three decades as pressure from sanctions imposed by the U.S. and its allies mounts, according to an internal forecast by the Finance Ministry.
Gross domestic product is likely to shrink as much as 12% this year, deeper than the 8% decline expected by the Economy Ministry, according to people familiar with the estimates who spoke on condition of anonymity to discuss internal deliberations. The government hasn’t released a public forecast.
The Finance Ministry’s figure would put the economic pain on par with the turmoil seen in the early 1990s, when Russia’s Soviet-era economy lurched toward capitalism with a contraction not seen since wartime.
“The main negatives are the oil embargo, the EU giving up Russian gas, along with more departures among foreign companies,” said Natalia Lavrova, chief economist at BCS Financial Group in Moscow. “All that will probably expand gradually, with a lot of negative carrying over in to 2023.”
https://www.msn.com/en-us/money/markets/russias-economy-facing-worst-contraction-since-1994/ar-AAX4qaQ
Heckuva job Pooty Poot.
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