"The war and sanctions significantly impact Russia's economy. We are projecting that output will shrink by -8.5% in 2022," said Pierre-Olivier Gourinchas, Chief Economist at the International Monetary Fund.
"This impact could even become larger if the sanctions are tightened further," he added, according to a tweet by the IMF.
Chief Economist @pogourinchas: The war and sanctions significantly impact Russia's economy. We are projecting that output will shrink by -8.5% in 2022. This impact could even become larger if the sanctions are tightened further. https://t.co/MM02mflnGf #WEO pic.twitter.com/mLZI2z4qwt
The prospects for more sanctions on Russia for its attack on Ukraine have increased, and the IMF projection paints a gloomy picture for Moscow's economy.
Russia's invasion of Ukraine in late February is the most significant attack on a European state since World War Two, which Moscow calls "a special operation in Ukraine."
Commodity prices have surged, leading to runaway inflation worldwide. That has led to a sudden shift in monetary policy focus to reign in rising price pressures.
Financial markets have been whiplashed, and the already disrupted supply chains by the pandemic have been distorted even further.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
