Russia's war on Ukraine will keep hurting its economy for years to come, Treasury Secretary Janet Yellen says

The effects of Russia's war on Ukraine will hurt the economy for a long time.

The US Treasury Secretary said at a meeting hosted by the International Monetary Fund and the World Bank that the country's economic growth is likely to be affected by Western sanctions.

Hundreds of private sector companies that have left the country and are not likely to return will create a drag on Russia's growth prospects for years to come.

Major western companies, including investment banks and oil majors, have relocated staff out of Russia, which is expected to hurt economic growth.

According to the Economist Intelligence Unit, Russia's gross domestic product is expected to contract 6.2% this year and 4.1% in 2020.

The economy is struggling under the weight of sanctions from the west.

Russia is now dependent on Iran and North Korea for basic military gear.

"At the same time, we have provided record amounts of both military and economic assistance to Ukranian," she said.

Goldman Sachs raised its forecast for Russia.

The bank said on Friday that the policies of the Bank of Russia would boost the economy and that they now expect the economy to contract.

The Russian economy has performed better than expected after the Russian authorities loosened fiscal policy to deal with the economic shock of the sanctions.

Russia's economy was predicted to fall after it invaded Ukraine. There are three charts that show that hasn't happened.