It will take the country’s economy until 2024 to adapt to the new conditions, according to the regulator
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The Russian economy is entering a phase of large-scale restructuring, which will be accompanied by a temporary rise in inflation, the Bank of Russia said in a statement on Friday.
In its forecast for the next few months, the regulator said businesses and the economy in general need to adapt to changing external conditions, and to focus on restructuring production and logistics chains amid the sanctions levied on the nation. This will be the major factor in tackling the potential rise in prices, the central bank said.
“Operational indicators, including the results of the monitoring of enterprises conducted by the Bank of Russia, show a deterioration in the Russian economy. Enterprises in many industries report difficulties in production and logistics against the backdrop of the trade and financial restrictions imposed on Russia,” the regulator noted, adding that economic uncertainty has an impact on the mood and expectations of both people and commerce.