Economist names the reasons that Russia was saved from economic collapse

02.01.2023, Sweden

High energy prices, the policies of the Central Bank of the Russian Federation and the experience of previous crises helped Russia to avoid the collapse of the economy as a result of Western sanctions, said the head of the Eastern European Institute of the Stockholm School of Economics, Thorbjorn Becker, on the SVT TV channel, on December 29.

The economic agencies that manage Russian macroeconomics have been through a number of crises and know what they can use to mitigate the effects of shocks from sanctions,” Becker said, referring to the crises of 1998, 2008-2009 and 2014.

According to the economist, the growth of world prices for energy resources provided support to the Russian economy. In addition, Becker noted that the competent policy of the Central Bank of the Russian Federation made it possible to quickly overcome the problems that arose in the country’s financial sector due to Western sanctions.

However, according to the economist’s calculations, Western sanctions have led to a reduction in Russia’s GDP. “Sanctions have reduced GDP growth by about 10 percentage points,” Becker stated.

Russian President Vladimir Putin had previously stated that “Russia has recently been facing unprecedented sanctions pressure from Western countries.” On April, 25 of 2022.

The gloomy forecasts made by many experts were not realized and the fall in Russia’s GDP for the year amounted to just over 2% as stated by the Prime Minister of the Government of the Russian Federation on December 28, 2022.

Source: Rossa Primavera News Agency

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