Russia's economy is set to sharply decelerate, returning to stagnation after two years of war-driven expansion, the International Monetary Fund (IMF) said in its latest global outlook published on July 30.

Vasily Astrov, expert on the Russian economy at the Vienna Institute for International Economic Studies, told Newsweek that "inflation has really subsided markedly over the past few months. The outcome of this policy has been a marked cooling of domestic demand, with the welcome side effect of rapid disinflation.