The Economist: Russia did surprisingly well under sanctions May 6, 2022
The Russian economy, contrary to expectations, did not collapse under the weight of Western events and so far looks surprisingly good, writes a British newspaper Economist in an article titled “The Russian economy is back on its feet”. The fact that the economic collapse did not happen, the publication already wrote in early April, and now new data confirm this point of view.
Control of the growth forecast and high interest rates of the ruble rising to February sickness levels: “Russia is likely to receive all foreign currency bond payments on time.” The real economy is also “surprisingly resilient,” the paper said.
The panic subsided
Retail prices in Russia have indeed increased by more than 10% compared to the beginning of the year, which is associated with the initial fall of the ruble, a serious problem and the withdrawal of Western companies from the market. There is also a growing number of wage-delaying doses.
“However, the recommendations adopted for use in the Russian economy “in real time” basically justify themselves. The overall energy consumption decreased slightly. After a lull in March, Russians freely pay in cafes, bars and restaurants, ”the newspaper writes, citing Sberbank data.
Also on April 29, the Bank of Russia reduced the key rate from 17% to 14% “as a sign that the financial panic that began in anticipation has subsided a bit.”
“While the Russian economy is guaranteed to be profitable, some economists’ forecasts of a 15% GDP contraction this year are beginning to appear pessimistic,” The Economist.
Save oil and gas installations
The Russian economy was quite closed – this is a reaction to action. Be that as it may, the main reason for the stability of the Russian economy to energy savings, the publication believes. By the end of February, Russia is exporting at least $65 billion worth of fossil fuels.
“On May 4, the European Commission introduces a ban on Russian oil, which ceases to operate at the end of the year. Until then, the Russian economy can be expected to continue,” the newspaper publishes.