Putin warned of dual threat to Russian economy: "Countdown to a crisis"
Moscow's economy is sliding toward the brink of "stagflation," according to a new report published by a Russian economics research organization close to the country's government.
The report's author, Dmitry Belousov, head of analysis and forecasting of macroeconomic processes at the Center for Macroeconomic Analysis and Short-Term Forecasting (CAMAC), said that the "economic dynamics" in Russia are "rapidly declining, with a risk of a technical recession in the second and third quarters" of 2025.
Why It Matters
After the invasion of Ukraine, Russia's economy has been seriously affected by sanctions imposed by Western countries trying to cripple its ability to finance the war, but it crucially avoided entering a recession. Now, however, the economy is facing a risky combination of factors—including rising prices, slowing growth and an acute labor shortage—that is threatening its stability and outlook.
In a sign that the Kremlin is aware of how fragile the country's economic position currently is, Russia's central bank cut its key interest rate to 20 percent on Friday, down from a two-decade high of 21 percent.
https://www.msn.com/en-us/money/markets/putin-warned-of-dual-threat-to-russian-economy-countdown-to-a-crisis/ar-AA1GjtQ8