Numerous sanctions were imposed after Russia attacked Ukraine. Experts were asked about the possible economic consequences.
According to a survey, financial market experts believe that the economic consequences of the Russia sanctions in Germany and the euro area will be limited.
According to the Center for European Economic Research (ZEW), 79 percent of the participants see rising inflation as the greatest impact. At the same time, the majority (74 percent) expect only a moderate decline in gross domestic product in the euro area.
The experts, on the other hand, see clear consequences for Russia’s economy. “The measures against the Russian central bank are said to have had the greatest impact,” explained ZEW President Achim Wambach. The international foreign exchange reserves of the Russian central bank are largely blocked as a result of sanctions. A majority of 91 percent of respondents expect this to damage Russia’s economy. 40 percent even assume a high level of damage.
According to 88 percent of respondents, the exclusion of several Russian financial institutions from the banking communication network Swift will have negative consequences. Less than half (43 percent) expect the freezing of Russian oligarchs’ foreign assets to have consequences for the country’s economy.
According to those surveyed, the most damaging measure for the German economy is likely to be the political pressure on Western companies to break off their business relationships with Russian companies. Here, 62 percent expect negative consequences. Significantly fewer financial market experts expect damage to Europe’s largest economy from the Swift exclusion of Russian banks (35 percent) and sanctions against the central bank (20 percent).
As part of its monthly economic survey, the ZEW also asked 162 financial market experts about the economic consequences of the sanctions in March.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
