The World Bank has warned that the Russian economy is threatened by sanctions and the COVID-19 pandemic. About this on Monday, December 20, in a conversation with “Vedomosti“Said the chief economist of the organization, David Knight.
Due to the relatively low level of vaccination, the possibility of a worsening situation with the spread of the virus puts pressure on the Russian economy, Knight emphasized.
According to the specialist, a possible aggravation of the epidemic situation could lead to the emergence of further coronavirus restrictions and a drop in business activity.
The organization believes that anti-Russian sanctions can partly undermine the development of the country’s economy if they are initiated by large countries.
At the same time, the World Bank drew attention to the fact that the Russian economy could also suffer due to inflation. The Bank of Russia is taking measures aimed at lowering the price level. However, it is “rather difficult” to say that price increases have been brought under control, the financier said.
Experts believe that one of the reasons for the surge in inflation in the Russian Federation in 2022 is the risk of rupture of supply chains, the consequences of which are difficult to predict.
The transition to carbon-neutral energy sources is another challenge to the Russian economy, because the demand for gas and oil from the Russian Federation will decrease, Knight concluded.
Earlier, on November 18, the head of the Central Bank Elvira Nabiullina noted that the economic recovery after the pandemic is as insidious as the patient’s recovery after COVID-19. After the “recovery”, some measures will be required to restore, however, the country’s economy has returned to a pre-pandemic trajectory, the head of the Central Bank said.
In the newsletter “What Trends Talk About”, which the central bank released in November, said current monetary policy would limit excess demand growth. The regulator also said that the growth of consumer prices in Russia in November, taking into account the seasonality, slowed down. Thanks to the expansion of production and the elimination of logistics problems, the supply of goods and services will gradually increase over the next year, the Bank of Russia said.
Earlier, on December 7, Russian leader Vladimir Putin said at a meeting on economic issues that the main problem of the Russian economy and the country’s residents today lies in the growth of inflation, which at the end of November was 8.4%. He stressed that in 2022 it is necessary to ensure its return to the level of 4%. The President indicated that the government is currently taking “vigorous measures.”
As the head of state noted in October, by the end of 2021, Russia may reach a record GDP growth. According to him, the entire economy of the Russian Federation “works rhythmically.”
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