Sanctions To Hit GDP and Temporarily Spike Inflation
By sweN TR
Russia’s Central Bank forecasts a period of restructuring that will require businesses to adapt to new production and supply chains, as GDP slumps and inflation rises.
“We expect a decline in GDP in the coming quarters,” said the CBR. “It will mainly be associated with supply issues [but] the support measures introduced by the government and the Bank of Russia will limit the scale of the economic downturn.”
Depending on how well the economy adapts to challenging conditions, the Bank expects conditions to return to normal with annual inflation back to 4% by 2024.