UN report: Russian economy performing better than expected in 2022
GENEVA, January 25 – RIA Novosti. While the Russian economy is estimated to shrink by 15 percent in 2022, it shrank by about 3 percent. to report United Nations “World Economic Situation and Prospects”.
“After the start of the war in Ukraine, the initial expectations were that the Russian economy would shrink by about 10-15% in 2022. In fact, the reduction was only around 3%,” the document says.
The UN adds that while high stock levels allow many firms to sustain production for a time, the central bank’s actions maintain financial stability.
“The strong strengthening of the Russian currency due to significant current account surplus and capital controls helped stabilize inflation and reverse the initial tightening in monetary policy and restore credit flow in the private sector,” the report says.
The UN expects the Russian economy to shrink by another 2.9% in 2023, if nothing changes.
There are no official statistics yet on the dynamics of the Russian economy in 2022. Meanwhile, Russian President Vladimir Putin expressed his expectation of a decrease of only 2.5%. The country’s GDP decreased by 2.1%, according to the January-November results, according to the Ministry of Economic Development. The Ministry’s official forecast for 2023 in terms of GDP dynamics is a decrease of 0.8%. First Deputy Prime Minister Andrei Belousov said he expects dynamics to be “near zero” by the end of December.
Russia launched a military operation in Ukraine on February 24. Putin called his goal “the protection of people who have been subjected to eight years of bullying and genocide by the Kyiv regime.”
The West has increased the pressure on Russia through Ukraine, which has led to higher electricity, fuel and food prices in Europe and the United States. Putin said that the policy of containing and weakening Russia is a long-term strategy of the West and that the sanctions have dealt a serious blow to the entire world economy. According to him, the main purpose of the West is to make the lives of millions of people worse. Moscow has repeatedly stated that Russia will solve all the problems that the West has created for itself.
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