(Finance) – Elvira Nabiullinanumber one of the Russian Central Bankstated that the perspectives for the Russian economy they are “extremely uncertain”, as the country’s GDP is expected to contract by up to 10% this year. International sanctions and falling consumer demand are squeezing the economy as inflation rises. The Central Bank has cut his interest rate key from 17% to 14% on Friday and predicted that the economy it will decline between 8% and 10% this year. “The current situation is extremely uncertain. At the same time, supply trends and the factors driving aggregate demand are changing dramatically,” Nabiullina stressed.
The Central Bank has made it known that theannual inflation it was 17.6% as of April 22 and forecast that it will rise to between 18% and 23% by the end of the year. “After a temporary surge, the demand for the consumers it is decreasing in real terms, accompanied by an increase in households’ propensity to save. The decline of imports due to the introduction of external financial and trade restrictions it is overcoming the decline in exports “, reads a note from the Central Bank.” Despite the gradual change in the structure of exports and imports by country and by raw material, with the emergence of new suppliers and sales markets, companies are encountering considerable difficulties in production and logistics “, he adds.
In the meantime, the encirclement of the Strength Russian around Mariupol where another area was closed in view of another possible attack attempt on the Azovstal steel mill. The news was reported by Petro Andrushchenko, adviser to the mayor of Mariupol. “For now, the occupiers have closed the Left Bank district square again from Veselka Park, north of the steel mill. This could be due to a new attempted assault on Azovstal or street fighting,” said Andrushchenko.