The head of the World Bank announced the impact of anti-Russian sanctions on global GDP

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The head of the World Bank announced the impact of anti-Russian sanctions on global GDP
The head of the World Bank announced the impact of anti-Russian sanctions on global GDP
15 March, 09:48EconomyPhoto: wemu.org
World Bank President David Malpass (pictured) is confident that sanctions imposed by Western countries against Russia will have a negative impact on global GDP. Moreover, they will have more impact than the special operation in Ukraine itself, which became the reason for the introduction of these restrictions.

The head of the World Bank said this at an event for the Washington Post.

Malpass pointed out that other countries will soon be able to recover from the cessation of energy supplies from the Russian Federation, as well as products from Russia and Ukraine. During the year, for example, agriculture will adapt to the changes.

Meanwhile, international rating agencies are downgrading Russia's position. Thus, on March 11, Moody's Investors Service downgraded the ratings of 11 Russian regions, five cities and two state-owned companies to "Ca" with a "negative" outlook. Before that, Moody's downgraded Russia's ratings to a level close to default : "Ca" from "B3", the outlook is "negative".

The agency's experts are increasingly predicting a default for Russia. This outlook reflects the risks to macroeconomic stability associated with the imposition of tough and coordinated sanctions, and the financial impact of delays in sovereign debt repayments and stress in the banking and corporate sectors.

Analysts have calculated that Western sanctions could lead to a fall in the Russian economy by at least 7%. Moreover, Russia's GDP will continue to fall next year. Oil exports could smooth out the subsidence of the economy, but only now the West has decided to refuse Russian fuel.

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