EBRD sees Russian economy growing 3% in 2022, notes sanctions risk By Reuters – Investing.com

EBRD sees Russian economy growing 3% in 2022, notes sanctions risk By Reuters – Investing.com

MOSCOW (Reuters) - The Russian economy will grow 3.0% in 2022 after expanding 4.3% this year, the European Bank for Reconstruction and Development said on Thursday, pointing to geopolitical risks that could cloud the economic outlook.

The Russian economy has already recovered to pre-pandemic levels after its sharpest contraction in 11 years of 3% in 2020. But it may now face headwinds from a possible drop in prices for oil, its main export, and numerous interest rate hikes.

In a report on regional economic prospects, EBRD said the Russian economy is boosted by social spending programmes that are facilitated by higher commodity revenues. But forecasts are subject to a number of risks.