#Wittels- Posted March 22, 2022 Posted March 22, 2022 Russia closed 2021 with a growth of the Gross Domestic Product (GDP) of 4.7% compared to the previous year after recovering from the recession in which it was plunged by the coronavirus pandemic, according to the Federal Statistics Service. The inflation rate in Russia between March 5 and 11 rose to 12.54% from 10.42% in the previous week, according to the Ministry of Economic Development. The Russian economy is heading for a large-scale structural transformation to face the impact of the unprecedented sanctions that the West has imposed on Russia for its military offensive in Ukraine, which implies a long period of strong uncertainty, difficult for the Bank of Russia. . Russia closed 2021 with a Gross Domestic Product (GDP) growth of 4.7% compared to the previous year after recovering from the recession in which it was plunged by the coronavirus pandemic, according to the Federal Statistics Service (Rosstat). This is the largest increase in GDP since 2008, when the Russian economy grew by 5.2%, according to the official TASS agency. The Central Bank of Russia (BCR) predicted on February 21 - three days before the Kremlin announced what it called a "special military operation" to "denazify and demilitarize" Ukraine - GDP growth of 5.5% year-on-year in the first quarter for the year as a whole an advance of between 2% and 3%. Russian GDP will suffer However, he admitted that the international sanctions against the bank itself, several financial entities and against multiple economic sectors of the country will cause a "reduction in GDP in the coming quarters", although he did not dare to put figures on the "economic slowdown" that it will suffer. the country. Nor does he opt for an estimate of year-on-year inflation, which has "accelerated significantly since the beginning of March." The inflation rate in Russia between March 5 and 11 rose to 12.54% from 10.42% in the previous week, according to the Ministry of Economic Development. Despite this, the BCR board of directors today maintained the interest rate at 20%, after having practically doubled it last month (from 9.5%) due to the first Western sanctions. The Governor of the Bank, Elvira Nabiúlina, still expected in mid-February that inflation would return to the 4% target in 2023, but the current situation has forced her to delay it to 2024. Ruble despised and exit of hundreds of companies The entity admits a dark outlook for the economy due to the outflow of capital, foreign companies, inflation, an unemployment rate that will increase after standing at 4.3% in December, according to Rosstat, and the strong depreciation of the ruble . The national currency stands after the BCR decision at 103.61 rubles per dollar and 112.85 rubles per euro. "The Russian economy is entering the phase of a large-scale structural transformation, which will be accompanied by a temporary but inevitable period of rising inflation," the BCR said. Firms in many industries report logistical and production difficulties amid trade and financial restrictions imposed on Russia, the Bank admits. In Moscow alone, some 300 foreign companies - several miles apart - have suspended their activity, the mayor, Sergei Sobyanin, said today. "A sharp increase in uncertainty weighs heavily on the sentiment and expectations of households and businesses," acknowledges the Russian monetary entity. The BCR warns that “the Russian economy faces considerable uncertainty regarding the speed and magnitude of the adjustment in aggregate supply in response to the recent increase in trade and financial restrictions”. For Nabiúlina, proposed today by the Russian president, Vladimir Putin, for a term of another five years at the head of the BCR, the business adaptation to change, including in the production and supply chains, will be destroyed in a key factor. measures against unemployment “The stimulus measures being taken by the Government and the Bank of Russia will limit the escalation of the economic slowdown. The path of recovery of the Russian economy came largely from the degree and speed of its adjustment to the new conditions”, assures the Bank of Russia. Link: https://gestion.pe/economia/la-economia-rusa-abocada-a-transformacion-estructural-y-fuerte-incertidumbre-rusia-noticia/
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