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Russian economy resilient to external shocks — Central Bank

Analysts of the Bank of Russia do not rule out positive processes in dynamics of the economy in 2023

MOSCOW, January 31. /TASS/. The national economy has turned out to be resilient to external shocks, the Bank of Russia said in its trends bulletin on Tuesday.

"The Russian economy turned out to be more resilient against the change in external conditions. The level of economic activity declined dramatically at the turn of the first quarter - start of the second quarter, but stabilized in general after that, and GDP may decline by 2-3% as of 2022 year-end," the regulator said.

The economy quickly adapted to shocks in 2022, the Central Bank noted.

Analysts of the Bank of Russia do not rule out positive processes in dynamics of the economy in 2023.

"Structurally, based on quantity and quality of labor resources and principal capital, and the technology level, the Russian economy appears somewhat weaker than in 2021. However, this should not prevent it from scaling up production in 2023 in processing sectors of the industry and certain other branches against possible stagnation or decline in some others. At the same time, positive processes in general economic dynamics in 2023 are possible in case of the return to the consumer model of households’ behavior and the decline of the saving rate, with concurrent growth of inflation pressure," the regulator said.