Russia forecasts 7.8% GDP contraction in 2022

The Russian Ministry of Economic Development said that it expected the country’s gross domestic product (GDP) to decrease by 7.8 per cent year on year in 2022.

Investment in fixed assets could nosedive by 19.4 per cent and the retail trade turnover may plummet by 8.7 per cent this year, a representative of the Ministry told reporters.

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The Ministry expected the unemployment rate to rise to 6.7 per cent from 4.8 per cent last year and the real disposable income of Russians to drop by 6.8 per cent this year, reports Xinhua news agency.

Inflation could surge to 17.5 per cent in 2022 from 8.4 per cent in 2021, it predicted.