EBRD expects serious Russia’s economy weakening

European Bank for Reconstruction and Development (EBRD) predicts a 10% drop in Russia’s GDP by the end of 2022, Report informs referring to the organization.

Earlier, the EBRD predicted that Russia’s GDP would grow by 3% this year, and the figure wouldn’t change in 2023.

“Sanctions against Russia are expected to continue for the foreseeable future, leading to the stagnation of the Russian economy in 2023 (after a sharp fall in 2022), a negative impact on neighboring countries in Eastern Europe, the Caucasus and Central Asia,” the bank said in a release.

The consequence of the hostilities in Ukraine will be “the most serious supply shock since at least the early 1970s.” Rising prices for food, oil, gas and metals are forecast to have a profound impact on economies, especially in low-income countries.

In addition, according to the results of the current year, the EBRD predicts a drop in Ukraine’s GDP by 20% (previously it was expected to grow by 3.5%), and in 2023 - an increase of 23%.