EBRD sees Russian economy grow 3% in 2022, sanctions risk notes | Invest News
MOSCOW (Reuters) – Russia’s economy will grow 3.0% in 2022 after growing 4.3% this year, the European Bank for Reconstruction and Development said on Thursday, highlighting geopolitical risks that could cloud the outlook economic.
The Russian economy has already returned to pre-pandemic levels after its largest contraction in 11 years of 3% in 2020. But it could now face headwinds linked to a possible drop in oil prices, its main export, and numerous interest rate hikes.
In a report on the regional economic outlook, the EBRD said the Russian economy is being boosted by social spending programs that are facilitated by rising commodity incomes. But the forecast is subject to a number of risks.
He underlined “geopolitical tensions, in particular the risk of new sanctions, and the volatility of prices and demand for oil and gas”.
The EBRD’s forecasts are in line with those of the Russian central bank which forecasts gross domestic product growth of 4.0-4.5% in 2021 and 2.0-3.0% per year in 2022-2024.
The EBRD provided the following forecasts for Russia and other countries:
(For a graphic on the EBRD’s economic forecast – https://fingfx.thomsonreuters.com/gfx/mkt/jnvwexgodvw/EBRD_forecasts_nov21.jpg)
(Report by Andrey Ostroukh, edited by William Maclean)
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