Russians will have a sharp drop in real incomes by 12% and the “prolonged reduction in the real GDP” of Russia. This was stated by Chinese economists Xiai Du and Ji Van, writes Economics Letters.
“This loss of well -being is mainly due to loss of access to components and finished products of foreign production,” the experts say.
“International production plays an important role in understanding the consequences of economic sanctions. It is necessary to pay more attention to the latest reports that many Western transnational companies have left Russia after the start of the Russian -Ukrainian war,” the economists emphasize.
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The income fall can be 10-12% depending on how many areas of the economy will suffer. This is one of the most pessimistic assessments of Russian prospects.