“ISW continues to monitor macroeconomic data that directly contradicts the Kremlin’s claims that the Russian economy is doing well”, — write: www.radiosvoboda.org
Russian President Vladimir Putin said during an economic meeting on January 22 that 2024 was a “strong year” for the Russian economy, with Russia running a manageable budget deficit of 1.7 percent and achieving a 26 percent increase in non-oil and gas revenues. sector
Bloomberg reported on January 21 that Russia’s Ministry of Finance released a report forecasting economic growth and suggesting that Russian budget revenues in December 2024 will reach a record level of more than 4 trillion rubles (about $40 billion) – 28 percent more than in December 2023, the highest level recorded since 2011.
However, as analysts note, these data do not take into account unacceptable levels of Russian defense spending, rampant inflation, growing deficits and the erosion of Russia’s sovereign wealth fund.
ISW continues to monitor macroeconomic data that directly contradicts the Kremlin’s claims that the Russian economy is doing well.
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The Kremlin recently approved policies aimed at increasing defense spending, while Russian society faces labor shortages, demographic problems, shrinking savings and a growing dependence on aid as the Russian economy struggles with rising interest rates, inflated wages and deteriorating manufacturing capacity. – these economic realities indicate that the Kremlin’s statements that the Russian economy is developing well do not correspond to reality, they add at the Institute of War Studies.
Last October, the World Bank predicted that in Russia, as a result of tighter monetary policy and “increasingly tighter constraints on production capacity and labor resources,” economic growth is expected to slow from 3.6% in 2023 to 3.2% this year and 1, 6% – the following.