Russia's Economy Faces Stagflation and Rising Costs Amid Crisis
TL;DR
A Kremlin-linked think tank warns that Russia is at risk of stagflation, where high inflation and economic stagnation occur simultaneously. Despite high interest rates aimed at curbing inflation, the Russian economy is facing a downturn, with businesses suffering from reduced profitability and potential bankruptcies. The central bank's tight monetary policy has not significantly lowered inflation, which remains high, particularly in food prices. The economy contracted by 3.1% year-over-year, and further interest rate hikes are expected as inflation persists.
- Russia's economy is heading toward a fate worse than recession, pro-Kremlin economists say Business Insider
- Russian Food Prices Skyrocket in Growing Concern for Kremlin Bloomberg
- Russia’s economy is overheating Semafor
- Pro-government economists blame central bank for plunging Russia into 'stagflation' Reuters
- Russia Faces a Wave of Bankruptcies as Borrowing Costs Skyrocket The Moscow Times
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