Russia expects the economy to contract by 8.8% in 2022 in its base case scenario, or by 12.4% under a more conservative scenario, an economy ministry document showed on Wednesday, further evidence that sanctions pressure is taking its toll.
The economy ministry expects Russia's economy to grow 1.3% in 2023, 4.6% in 2024 and 2.8% in 2025, the document showed. In the conservative scenario, the economy is seen contracting 1.1%.
Inflation, which has already soared to 17.62% as of April 15, is seen accelerating to as high as 22.6% this year, the document showed, and remaining well above the central bank's 4% target in 2023.
The central bank hiked rates to 20% from 9.5% in late February in an emergency move that Governor Elvira Nabiullina said helped stabilise the ruble and overcome an inflation spike.
