According to the International Monetary Fund (IMF), the duration of the war in Ukraine and the sanctions against Russia will determine the Russian recession.
Russia could go bankrupt because of the economic sanctions imposed by the war in Ukraine, according to the International Monetary Fund (IMF). “Russia’s bankruptcy is no longer an unlikely event,” IMF Director Kristalina Georgieva said yesterday in a digital meeting with several international media outlets.
He also warned that the Russian economy is already shrinking and is headed for a deep recession this year.
As he explained, the duration of the war and the sanctions, as well as the possibility that they become more severe and affect energy exports, will be the key elements to determine the magnitude of the recession.
In addition, he considers that the conflict can also have strong consequences for the global economy, especially for the neighboring countries of Russia and Ukraine.
Georgieva has pointed out three direct consequences of the conflict for the global economy: the increase in the prices of raw materials, the reduction of global purchasing power due to inflation and the impact on world financial conditions and business confidence.
Source: Eitb
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