JP Morgan predicts that the drop in Russia’s GDP “from top to bottom” will be about 12%, while during the 1998 crisis it was about 10%, in 2008 about 11%, and due to the shock associated with COVID-19 – approx. 9 percent – JPMorgan’s Anatoly Schall assessment, quoted by Reuters.

JP Morgan expects Exports are down 13% this year. , a decrease in domestic demand of about 10%, and import – by up to about 30 per cent.

“It is clear that Russia’s increasing economic and political isolation will lead to lower growth in the long run,” Schall added.

Triple the 1998 crisis

Before 1998, Russia began to borrow large sums from foreign investors, which led to a significant increase in foreign debt. With the fall in commodity prices, which represented the most important part of Russia’s income, in 1998, the country became insolvent in sovereign debt. Significantly weakened the ruble.

Some believe that the current crisis will be much worse for Russia than it was in 1998. – Russia will face a very severe economic crisis for at least three years due to “the events in Ukraine” – said Russian oligarch Oleg Deripaska, who is connected to the Kremlin, Interfax reported.

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