Skip to main content

Sanctions, war and Russia's economy: what next?

Russia’s economy has adapted to Western sanctions better than had been expected so far, but maintaining macroeconomic stability is now becoming more challenging and depends in large part on the outlook for energy exports and the extent to which additional resources are diverted to the war effort in Ukraine. Our baseline view is that the deterioration in Russia’s external and fiscal positions will be manageable this year and next. But there’s now a growing possibility that Russia's economy follows a path towards more significant macroeconomic instability, including a smaller current account surplus, larger budget pressures and higher inflation and interest rates.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access