{"id":210804,"date":"2025-06-24T16:16:20","date_gmt":"2025-06-24T16:16:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/210804\/"},"modified":"2025-06-24T16:16:20","modified_gmt":"2025-06-24T16:16:20","slug":"russias-economy-is-down-but-not-out-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/210804\/","title":{"rendered":"Russia’s economy is down but not out"},"content":{"rendered":"

Still, he and others see reasons for concern, and that’s because Russia appears to have entered a period of stagnation.<\/p>\n

Its inflation rate was 9.9%, external<\/a> in the year to April, partly due to Western sanctions pushing up the price of imports, but also because of worker shortages which have driven up wages.<\/p>\n

The country lacked around 2.6 million workers, external<\/a> at the end of 2024, according to Russia’s Higher School of Economics, largely due to men going to war or fleeing abroad to avoid it.<\/p>\n

The central bank put interest rates up to record levels this year to try and tame the rising prices – but it’s making it more costly for companies to raise the capital they need to invest.<\/p>\n

Meanwhile, Russia’s oil and gas revenues have fallen due to sanctions and weaker pricing, and were down by 35% year-on-year in May, external<\/a>, according to official figures. <\/p>\n

It has contributed to a widening budget shortfall, external<\/a> that has left the country with less to spend on infrastructure and public services.<\/p>\n

“They have this large pot of expenditure for the military that can’t be touched,” says Andr\u00e1s T\u00f3th-Czifra, a political analyst and Russia watcher. “So it means money is starting to be reallocated from vital investment projects in road, rail and utilities.<\/p>\n

“The quality of provision is really suffering.”<\/p>\n

Russia may have coped better than expected with Western sanctions, but they continue to drag on the economy, he adds.<\/p>\n","protected":false},"excerpt":{"rendered":"Still, he and others see reasons for concern, and that’s because Russia appears to have entered a period…\n","protected":false},"author":2,"featured_media":210805,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7654],"tags":[2000,299,657],"class_list":{"0":"post-210804","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ukraine","8":"tag-eu","9":"tag-europe","10":"tag-ukraine"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114739241732057470","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/210804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=210804"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/210804\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/210805"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=210804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=210804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=210804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}