"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
April 20, 2022The 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.
AdvertisementRussia'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.Â
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