Connect with us

Hi, what are you looking for?

World News

Russian economy will not return to pre-war levels until 2030 – Scope

Russia’s economy is not likely to return to prewar levels before the end of this decade as the Ukraine war and stricter sanctions worsen long-standing economic deficiencies, Scope Ratings said in a report seen by Reuters on Friday.

By the end of 2023, gross domestic product (GDP) will be about 8% below where output was in 2021, according to the credit rating watchdog’s forecast.

The Russian economy expanded by 4.7% in 2021, according to federal statistics service Rosstat. Read full story

After 2023, potential growth will drop to 1.0-1.5% a year from the 1.5-2.0% achieved before the war, the agency said.

“The Russian government, helped by the Bank of Russia, has used windfall export revenues to mitigate the immediate domestic economic impact of the war in Ukraine and sanctions, but the longer-term outlook has worsened,” said Scope analyst Levon Kameryan.

Accelerating capital outflows, limited access to Western technology and negative demographic trends will continue to hamper growth and compound the effects of the war and sanctions in the absence of any significant economic restructuring, according to the report.

About four times as much private capital – $64.2 billion – flowed out of Russia in the first quarter of 2022 alone compared with the same quarter last year, said the report.

The Scope report predicts that the private sector will withdraw more capital from Russia this year than the $152 billion pulled out in 2014, when Russia annexed the Crimea. – Reuters

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Business

    Since the rise of online casinos, cybersecurity has become a major concern for both casino operators and players alike. The transactions that go around...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 rightdecisionnow.com | All Rights Reserved