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The Russian economy is grappling with a profound plunge

Image -AP

Since the onset of the Russian-Ukraine war, the western world has endeavored to deter the Russian invasion by attacking Russia on its economic front. After the Invasion, Russia is currently floundering with the deepest economic contraction in nearly three decades. Under the severe sanctions imposed on Russia by the U.S and its allies, Russia is grappling on the economic front as the sanction keeps on mounting, says the internal forecast by Finance Ministry.

According to the internal forecast, the GDP of Russia is likely to shrink as much as 12%, more profound than the 8% expected plunge in the economy. The Finance Ministry's recent report would correspond to the economic turmoil seen in 1990 when Russia's Soviet-era economy wobbled towards capitalism.

Furthermore, the Bank of Russia claims it expected a contraction between 8-10% this year. Simultaneously, the Monetary Fund class to see a plunge up to 8.5%. Though the reports are based on possibilities, if the forecast is accurate, Russia might suffer a greater setback on the economic front.

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