A view of the business tower Lakhta Centre, the headquarters of Russian gas firm Gazprom in St. Petersburg, Russia, April 27, 2022 (AP Photo/Dmitri Lovetsky, File)

Russia's GDP declined by 2.1 percent in 2022, according to a report by the Federal State Statistics Service (Rosstat) published on Monday.

Earlier in February, the Russian Central Bank said that the decline in Russia's GDP in 2022 amounted to 2.5 percent.

"The volume of Russia's GDP for 2022, according to the preliminary estimate, amounted to 151,455,6 billion rubles [$2.3 billion] at current prices. The index of the physical volume of GDP relative to 2021 was 97.9%. The GDP deflator index for 2022 in relation to the prices of 2021 amounted to 114.3%," the report said.

Inflation at 3.6% Y/Y, GDP decline at 2.4% Y/Y in Q1 2023: Russia's Central Bank

In a report on monetary policy, the Bank of Russia said it expected the annualized inflation in the country to be at 3.6 percent by the end of the first quarter, and the GDP to decline at 2.4 percent year-on-year.

According to the central bank's official forecast, inflation will be in the range of 5-7 percent in full-year 2023, while the GDP may decrease by 1 percent or grow by 1 percent.

Read: Head of Russian Central Bank: Sanctions reshaping world economy

It is worth noting that last November, inflation was down from 18% in April 2022, reaching 13% in October despite the escalating sanctions and pressures, according to Mikhail Mishtusin, Russia's Prime Minister.

The Prime Minister stated that Russia managed to overcome the worst, and also managed to set conditions that function to stabilize economic dynamics, sustain public finances and allow for the eventual recovery of consumer demand and investment activity.

In August, the Central Bank of Russia stated that the economic adjustment process could take up only 1.5 years.

The bank said that the Russian economy will face unprecedented Western sanctions as a result of Moscow's war in Ukraine.

It also forecasted a 4-6% decline in GDP in 2022 and a 1-4% decline in 2023. Inflation, according to the forecast, will fall to 5-7% in 2023 and close to 4% in 2024.

Since the beginning of the war with Ukraine, the US and the EU have multiplied punitive measures to isolate Russia by targeting its banking system, and freezing the assets of its leaders, and its industries.