The IMF chief stated that the impact could advance if the sanctions are tightened further.
The war and multiple sanctions have had severe impacts on the Russian economy. Following the estimation, the output will fall by -8.5 per cent in 2022, as per Pierre-Oliver Gourinchas, Chief Economic at the International Monetary Fund.
In the tweet by the IMF, he added that this impact could advance if the sanctions are tightened further.
Chief Economist : 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 pic.twitter.com/mLZI2z4qwt
— IMF (@IMFNews)The prospects of new sanctions against Russia due to its attack on Ukraine have increased, and the IMF's forecast for Moscow's economy is bleak.
Russia's invasion of Ukraine in late February was the biggest significant attack on a European state since World War II, which Moscow refers to it as a 'special operation in Ukraine.'
Commodity prices have soared, causing global inflation to spiral out of control. As a result, the focus of monetary policy has shifted abruptly to contain rising price pressures.
Financial markets have been shattered, and the pandemic's already disturbed supply lines have been further warped.
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