OECD: War and sanctions plunged Russia into economic crisis

Vladimir Putin plunged the Russian economy into a serious crisis with his war against Ukraine.
Mikhail Metzel/POOL/TASS]

The war against Ukraine and the sanctions that followed will plunge Russia into a serious economic crisis, the OECD expects.

Russia’s economic performance will fall by 3.9 percent this year and by another 5.6 percent in 2023, the OECD said in its autumn forecast.

This puts Russia at the bottom of all industrialized and developing countries. Russia’s economic performance in 2023 is even lower than before the first attack on Ukraine with the annexation of Crimea in 2014.

Russia’s war of aggression against Ukraine and subsequent sanctions plunged the country into a deep economic crisis. This is the assessment of the organization of industrialized countries OECD. Russia’s economic performance will decrease by 3.9 percent this year. In 2023, the gross domestic product will collapse again by 5.6 percent.

An expensive war and sanctions are throwing Russia back to the bottom of all industrialized and developing countries. None of the other countries considered by the OECD or the International Monetary Fund will experience a cut as deep as Russia, which itself triggered the crisis with its attack on Ukraine.

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Russia’s GDP in 2021, before the war, was the equivalent of $1.776 trillion. The deficit this year and next corresponds to a drop in economic output of roughly $165 billion.

The comparison with the Russian economy before the first attack on Ukraine with the annexation of Crimea in 2014 is also interesting. In the previous year, 2013, Russia’s economic output was 2.29 trillion US dollars. The country has been lagging behind in the ranking of the largest economies for years. At times, this decline was overshadowed by high commodity prices.

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