Russian economy shrank only by about 3% in 2022, despite the forecasts that predicted the fall to amount to 15%, according to a UN World Economic Situation and Prospects (WESP) 2023 report published on Wednesday
GENEVA (Pakistan Point News / Sputnik - 25th January, 2023) Russian economy shrank only by about 3% in 2022, despite the forecasts that predicted the fall to amount to 15%, according to a UN World Economic Situation and Prospects (WESP) 2023 report published on Wednesday.
"Following the start of the war in Ukraine, initial expectations were for a contraction of the Russian economy to about 10 to 15 per cent in 2022. In practice, the contraction has been just around 3 per cent," the report said.
The UN believes that such results were achieved due to high inventory levels that allowed to maintained production levels, as well as due to the actions of the Russian Central Bank that maintained financial stability.
"The strong appreciation of the Russian currency due to large current account surplus and capital controls contributed to stabilizing inflation and supported a reversal of initial monetary tightening, restoring credit flows to the private sector," according to the report.
The UN expects the Russian economy to contract by a further 2.9% in 2023, if the current situation does not drastically change.
