March 4, 2024

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The Russian economy shrinks due to international sanctions |  Economie

The Russian economy shrinks due to international sanctions | Economie

The Russian economy is clearly affected by international sanctions against Russia and the massive boycott of the country by Western companies. New figures from Russia’s Ministry of Economy indicate an economic contraction of 3 percent in April, after GDP growth of 1.3 percent in March.

Read all about the war between Ukraine and Russia in this file

The massive panic buying of the Russians in the weeks following the invasion of Ukraine obscured the economic blow of Western punitive measures. But then inflation began to recover more quickly. This made life for Russians suddenly more expensive. So Russian families started buying less and saving more in turbulent times.

The Store sales Data from the Federal Statistics Office in Moscow showed a decline of nearly 10 percent year on year in April. Blow to the industry and Transport of goods It also turned out to be worse than economists widely expected. The Produce In factories, it is about 2 percent lower than the previous year.

However, the The situation on the Russian labor market is quite stable and the Surprisingly, unemployment decreased slightly 4% of the workforce. This is despite the withdrawal of dozens of foreign companies from Russia in the wake of the invasion. Perhaps one factor is the fact that most of these companies have chosen to pay normal salaries to their Russian employees at the moment.

It was previously reported that the prospects for the Russian economy do not look good. Last month, the Russian Central Bank said it expects a contraction of 8-10 percent for the whole of this year. The inflation rate is expected to range between 18 and 23 percent. The International Monetary Fund earlier forecast that the Russian economy will contract by 8.5 percent this year.

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