The European Commission also expects the level of private investment in the country to decline by more than 20%.
By 2023, the Russian economy will stabilize and will be able to adapt to the situation of severing many economic ties with the West.
At the same time, Russia’s GDP growth in 2023 will not exceed 1.5%, according to the spring economic forecast of the European Commission (EC).
According to the forecast of the European Commission, in 2022 GDP will shrink by 10.4%. At the same time, inflation in the Russian Federation will exceed 20% in 2022 and will drop to 10% in 2023.
Private investment is projected to decline by more than 20% in 2022 given the exceptionally low appetite for new investment in the current environment due to the exodus of foreign firms.
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