According to a Goldman Sachs forecast, the ruble’s recovery is an illusion as Russia’s economy heads into a deep recession due to Biden sanctions.
Index of financial conditions from Goldman Sachs for Russia:
Goldman’s index of financial conditions for Russia is now tighter than immediately after the sanctions were imposed. Financial conditions are extremely tight and will lead to a deep recession, driving our -30% yoy decline in GDP by the end of 2022. The recovery of the ruble is an illusion. With @elinaribakova pic.twitter.com/rL2RYxMqBj
— Robin Brooks (@RobinBrooksIIF) May 21, 2022
Biden’s sanctions are working, but sanctions are a slow tightening of an economy. Sanctions do not have the desired effect overnight. For the crowd on the right that likes to take the rise in the ruble as proof that sanctions haven’t worked, it needs to be remembered that the Russian government pumped up the ruble and Putin cannot continue this policy forever.
Russia uses the ruble to create the illusion that sanctions don’t work when the reality beneath the surface is that Russia is headed for a catastrophic economic contraction.
The sanctions are working, and with every day that Putin continues his preferred war, the economic environment in Russia is getting a little worse.
President Biden’s global leadership has put Russia in a position where it has already lost. Putin will never conquer and occupy Ukraine, and his foolish war will wreak havoc on Russia for years to come.
Russia will be feeling the cost of invading Ukraine for a long time to come.
Mr. Easley is the managing editor. He is also a White House press pool and congressional correspondent for PoliticusUSA. Jason has a bachelor’s degree in political science. His thesis focused on public policy with a specialization in social reform movements.
Awards and professional memberships
Member of the Society of Professional Journalists and the American Political Science Association