At 7%: Moody’s predicts collapse of Russian economy

The Russian economy for this year can against the background of harsh sanctions and their consequences fall at 17% immediately, says the international rating agency Moody’s. At the same time, it is predicted that in 2023, Russian GDP will continue to decline, Interfax reports.

In particular, they pointed to Moody’s, “a sustainable depreciation of the ruble will have serious economic consequences in the form of increased inflation and reduce standard standards.”

“Although the inflow of foreign currency on the export of Russian oil and gas can mitigate the impact of harsh sanctions, this does not exclude, according to Moody’s, the high probability of long-term economic shocks and increased susceptibility to the shocks. In addition, the further tightening of sanctions imposed on Russia Western countries, it may well touch the vital source of foreign currency and state revenues, “- suggests the agency.

Russia soon will be able to return the investment level rating, which it was even recently, even in the optimistic scenario of the development of events, warned agency.

Earlier, an interfax surveyed experts warned that the economy of the Russian Federation in the current year with a high probability will enter the recession, and the pace of recession can achieve two-digit values ​​in the event of the expansion of Western sanctions due to the “military operation” of Russia in Ukraine.

Earlier on Sunday Moody’s, already dropped long-term ratings of the Russian Federation on debt obligations in foreign and national currency immediately six steps – to “B3” with “BAA3”, continued to worsen the assessment of Russia’s creditworthiness, Interfax reports.