The Russian economy is forecast to experience a drastic constriction this year in addition to dealing with high inflationary pressures because it is impressed by international barriers against its attacks on Ukraine.
Among the early impressions that can be seen on the Russian economy are manufacturing activity data on Macs which recorded the most notable decline since May 2020 at the start of the Covid-19 pandemic, due to material shortages and delivery delays that put a strain on refineries.
The S&P Global purchasing managers' index (PMI) for Russia, released on Friday, showed a close at 44.1 from 48.6 recorded in February. According to analysts, the fall was due to a sudden drop in output, new orders and the new export orders component.
According to economists at Capital Economics, Western barriers will probably push Russia's Gross Domestic Product (KDNK) growth to 12% by 2022 and inflation to exceed 23% year-on-year.
Meanwhile, the European Bank for Rebuilding and Development has also recommended a 10% shutdown in Russia's economy, which would account for the country's worst slump in nearly 30 years.
President Vladimir Putin, however, remains positive about his economy, having previously said the country will emerge stronger.
In fact, the Kremlin has also managed to repay the bill recently despite Western barriers that have frozen most of its foreign currency deposits worth $640 billion.
To support his currency's initial rise, Putin has also urged Europe to pay for their gas imports in rubles. However, there is still no decision regarding the payment will be carried out.
However, Russia's economy remains under threat as more barriers await Russia following its actions in the massacre in Bucha, Ukraine.
