Russia’s central bank: The country’s economic outlook has deteriorated

Russia’s economic outlook has deteriorated and the country’s gross domestic product (GDP) is expected to decline more sharply than previously forecast this year, the Russian central bank said on Thursday.

Addressing the Russian parliament, the head of the national central bank, Elvira Nabulin, warned of the structural transformation of the Russian economy and the challenges posed by Western sanctions.

“Difficulties are observed in all industries in both large and small companies,” Nabulin said.

She said that the country’s economy, which had previously been heavily dependent on imports of production equipment and consumer goods, had already begun to transform.

“As a result of the sanctions, Russian consumers and producers are losing access to the import and export markets of finished products and components,” Nabulin said.

According to a recent expert survey by the Russian central bank, the country’s economy will shrink by 9.2% this year, while inflation will reach 22%.

In a previous survey, experts predicted an economic downturn of 8% and inflation of 20%.

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