Putin’s War to Reverse Economy by 15 Years
By The Messenger Staff
Friday, March 25, 2022
According to the International Finance Institute (IIF), Russia will lose the economic growth it has achieved for 15 years by the end of 2023.
The economy is expected to shrink by 15% in 2022, followed by a 3% decline in 2023. This will return the country's GDP to its previous level of 15 years. Economists Benjamin Hilgenstock and Elina Rybakova also point out that additional sanctions may change their views.
Russia's invasion of Ukraine last month has led to the collapse of the ruble, the chaos of global supply chains, and commodity prices. Foreign companies have left the Russian market en masse.
Even after an instant blow to the Russian economy, the so-called ‘brain drain’ (the departure of educated, middle-class Russians from the country) will hit the country's economy for years. At the same time, according to the IIF, export control from the US and the EU on technologies, including microelectronics, will hinder technological development in Russia for years.
At the same time, ‘self-sanctioning’ by foreign companies that no longer want to do business in Russia will weaken important sectors of the country's economy.