Posted on 04/08/2025 1:48:50 PM PDT by marcusmaximus
The Russian economy has slowed sharply in recent months, according to the latest economic data, and may be at further risk if a fall in oil prices and global market turmoil persist.
Russia's growth, fuelled by spending on the three-year-old war in Ukraine, exceeded 4% in the past two years, but a labour shortage across many other sectors has contributed to a wage-price spiral that has pushed inflation above 10%.
In response, the central bank has raised its key interest rate to 21%, the highest level since the early 2000s, prompting howls from business leaders who say it is stifling investment. Meanwhile, the price of Russia's main export, oil, is falling.
GDP growth fell to 0.8% year-on-year in February from 3% in January, the lowest figure since March 2023, with transport, wholesale trade and mineral extraction leading the decline, according to data issued last week.
Industrial output growth plunged to 0.2% from 2.2%.
Economists said that, even though February was one day shorter than last year, signs of a slowdown were evident.
"The deterioration in a significant part of the industrial sectors is becoming persistent. Signs of a slowdown are taking hold," Raiffeisenbank analysts said in a research note.
They cited high interest rates, labour shortages, a lack of production capacity outside the defence sector and continued pressure from Western sanctions.
(Excerpt) Read more at msn.com ...
Interesting to note that yesterday, Saudi Arabia announced plans to significantly increase oil production. President Putin probably won’t like that.
Oil is becoming cheap again. Biden kept the oil price high.
Biden funded Putin’s invasion.
“Russia’s economy will collapse any second now!”
Said the neocon nutballs for the 981st day in a row
“They cited high interest rates, labour shortages, a lack of production capacity outside the defence [industry] “.
Don’t start wars and kill off significant parts of your Potential labor force and maybe you can live a decent life.
lovingliberty1965
Since Jan 7, 2025
Just noting.
The entire world’s economies are in a down turn. Russia’s GDP is growing.
https://www.statista.com/statistics/263772/gross-domestic-product-gdp-in-russia/
Urals crude stronk like Stalin!
We will never understand the Russian mind, and our relationship with them will forever be clumsy, and they with us.
Another positive effect c/o Trump’s new energy policies.
Cheaper oil for Europe, less money for Russia.
He’ll be fine after Allegra takes him under her smelly wing.
“Russia’s GDP is growing.”
Russian economy slows sharply, with more turmoil on horizon
The latest data show that only sectors linked to military production or involved in substituting sanctioned imports are still growing.
“In industry, stagnation continued,” said experts from the TsMAKP think tank, which advises the government.
It had previously said sectors outside the military-industrial complex had been stagnating since mid-2023.
Dear Putin: Have a brain; end your war and enjoy prosperity.
“Russia’s GDP is growing.”
Statista. Garbage in, garbage out.
We should not put too much emphasis on the exact number due the heightened uncertainty of Russian statistics since the invasion of Ukraine.
The current strong boost from public spending on war-related branches masks the longer-term negative consequences of the war and Russia’s policies. Russian economic growth is largely confined to war-related activities (Figure 1). For the rest of the economy, development has been modest. Notably, some of the output and investment growth associated with war effort is rapidly destroyed on the battlefield – it does little to improve the welfare of Russian society. Russian GDP figures depict a shift to military-industrial activity and cannibalization of longer-term consumer welfare and social safety nets.
If we really believed Reuters or AP or MSDNC, the Russian economy would have already collapsed two or three years ago.
Heck, I thought Moscow was about to fall. Was I misled?
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