Russia says economy will shrink by less than 3% in 2022 By Reuters

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©Reuters. FILE PHOTO: A pedestrian walks past the windows of commercial premises available for rent June 8, 2022 in Moscow, Russia. REUTERS/Evgenia Novozhenina

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(Reuters) – Russia’s economy will contract by less than 3% this year, First Deputy Prime Minister Andrei Belousov said on Monday, as a strong labor market helps cushion the economy from the fallout of what Moscow is calling a “special military operation” in of Ukraine calls .

Belousov said Russia’s gross domestic product will fall by “just over 2%” this year. After that, a decline of “no more than 1%” will follow in 2023, Belousov predicted.

Some economists were forecasting a 15% GDP slump this year amid Western sanctions imposed over the Ukraine crisis aimed at crippling Russia’s economy.