Retail Crowd

Complete British News World

In a matter of moments, the Russian economy will enter a recession and collapse

The expert was quoted as saying that, according to a Russian economist, the Russian economy may plunge into recession in the second quarter as a result of Western sanctions. interested in trade. Much of the country’s financial system has been excluded from SWIFT’s international financial transfer system, many of its private assets in Europe and the United States have been frozen, the ruble has weakened dramatically and interest rates have doubled. Experts generally believe that the effect of the procedures can take months.

They are arguing with Yevgeny Nadorsin, chief analyst at the PF Capital research institute in Moscow, who says the Russian economy is already in recession in the second quarter. By the accepted definition of a recession, we talk about this when the economy has contracted for two consecutive quarters. However, nadorsin draws attention to some conditions that can accelerate negative processes.

More importantly, the average Russian has little savings, so it has boosted its consumption of loans in recent months. This means that in the coming months, part of their income will be deducted by repayment, which will limit consumption. As a result, the economy will start to contract as early as April.

This is evidenced by the fact that Russian banks achieved record profits in 2021, the gateway to the United States Moscow Times Information. The Central Bank of Moscow reported that consumer loans grew by more than 20 percent last year, compared to 8.8 percent in 2020. At the same time, according to the expert, unemployment could rise, breaking the downward trend associated with the decline of the epidemic. Thus, household income will not rise further but rather will fall relatively due to inflation.

READ  Fifty percent chance of crossing the 1.5-degree climate threshold in five years, the limit of irreversible change

You can read the most important news about Ukraine at this link.