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Recession Is Unavoidable Without Russian Oil, Dallas Fed Study Says

  • Downturn may be longer than world economy saw in 1991
  • Some nations could use trade credit for Russia oil, study says
Oil storage tanks at a refinery in Tuapse, Russia.
Oil storage tanks at a refinery in Tuapse, Russia.

Source: Bloomberg

Updated on

The global economy likely won’t be able to avoid a recession without a resumption of Russian energy exports this year, according to a study by Federal Reserve Bank of Dallas economists.

“If the bulk of Russian energy exports is off the market for the remainder of 2022, a global economic downturn seems unavoidable,” economists Lutz Kilian and Michael Plante wrote in an article posted by the Dallas Fed Tuesday. “This slowdown could be more protracted than that in 1991.”