Russia’s economy has shrunk less than expected
Based on published analyses, Russia’s economy shrank less than expected last year, despite the country’s attack on Ukraine.
According to information released by the Russian Statistics Agency, the country’s economy shrank by 2.1% last year, but it had previously been predicted that the economy would decline by nearly 12%.
Although some have expressed doubts about the credibility of the data announced by the Russian Statistics Agency, many analysts have been surprised by the resilience of Russia’s economy.
Following Russia’s attack on Ukrainian soil last month, hundreds of Western companies exited Russia, and the shock from this development temporarily closed the Russian stock market and caused the ruble to plummet.
The International Business Institute had predicted that Russia’s economy would shrink by 15% by March 2022 due to these developments. U.S. President Joe Biden also stated that the economic consequences of the war and Western economic sanctions against Russia would reduce the country’s economy to half its current size.