Russia's GDP will decline by 8% in 2022

The Central Bank survey showed that Russia's inflation rate reached 20% and the annual inflation rate was 10.42% as of March 4, and that Russia's GDP was declining by 8% in 2022 with Western sanctions that isolated the central bank and banks from the financial system Global . Russia's central bank raised its key interest rate to 20% from 9.5% in an emergency move last week, introduced capital controls and told its export-focused firms to sell foreign currency as the ruble sank to record lows.

"A significant revision of the consensus estimate reflects a fundamental change in economic conditions over the past two weeks, and the measures taken by the Bank of Russia and the government are aimed at reducing the scale of the economic downturn and avoiding a prolonged period of high inflation," Alexei Zabotkin, deputy central bank governor, said in a statement.