The Russians will not be sweet: as the war against Ukraine depletes the economy of the Russian Federation
According to the publication, the Kremlin, in trying to fund a war against Ukraine, depletes resources with the rest of the country's economy.
Therefore, the Kremlin's head has three challenges: to finance the war against Ukraine, to support the standard of living of the population and to protect macroeconomic stability "to achieve the first and second goals will require a lot of expense, which will promote inflation and, thus, will prevent the third goal from achieving the third goal," the article said.
It is noted that the profit from oil and gas, the skillful management of finances by the Russian authorities and the poor use of Western restrictions helped Moscow stabilize the situation in the economy. But they mask a growing imbalance. The article also states that the Russian industry has been transformed, the defense sector is now noticeably ahead of the civilian industries.
Meanwhile, the military expenditures of the Russian Federation have exceeded social for the first time since the collapse of the USSR. Russia is going to spend about a third of its budget in 2024 on defense expenditures. Social costs, including pension and benefits, will be about a fifth of the budget. "The military sector receives disproportionate state funding, and also takes labor, which leads to an abnormally low unemployment rate of 2. 9%," the newspaper writes.
It is indicated that the relationship between military expenses, lack of labor and wage growth has created the illusion of well -being, but it is unlikely to last for a long time. Russian companies are already raising wages against the background of labor shortages or require more money from competitors in other sectors. In addition, inflation is another problem that will have a serious impact on the Russian economy in the future.
Yes, its level has already exceeded 7%, so the Central Bank of the Russian Federation tries to maintain interest rates at 16%. "The Russian economy is more threatened than it shows growth statistics, and future elections can provoke further fateful decisions that can exacerbate long -term challenges if Vladimir Putin decides to buy voter loyalty. Overheating is often a harbinger of recession," the material reads. Meanwhile, Russia is not going to give up the idea of winning Ukraine.