Russia ‘on Brink’ of Recession, ITS Economy Minister Says – ryan

The Russian Economy is “on the Brink” of Entering a Recession, The Country’s Economy Minister Warned on Thursday.

Speaking at the St. Petersburg International Economic Forum, A Major Annual Business Event in Russia, Maxim Reshatnikov Said Data Showed The Economy “Cooling.

When a moderator asced Him to describe the State of the Economy, he said it seamed that the Country was “on the verge of going into recession,” Acciting to russian news agency interfax.

He late clarified that he wasn’t Making an Outright Prediction. “I Said that we were on the Brink,” Reshatnikov Said. “From here on Out, Everything Will Depend on Our Decisions.”

Reshatnikov has already raissed Concerns About the Direction of the Russian Economy. In May, while Addressing the State Duma, he said that the economic was cool so Sharply it risk entering a state of economic “hypothermia.”

In that address, reshatnikov urged Russia’s Central Bank to take intoo Account easing inflation when interesting interest rates. On june 6, the bank did just just, cutting its key interest rate from 21% to 20%, Citting Signs of Declination Inflation.

While inflation is easeing slightly, it has remained stubbornly High-Now Hovering AROUND 10%-SINCE SPIKING IN THE WAKE OF RUSSIA’S FULL-SCALE INVASSION OF UKRAINE IN FEBRUARY 2022.

Hard or soft landing?

The Central Bank of Moves to Dampen Inflation Meant a Sharp Economic Slowdown was inevitable and intentional, Brigitte Granville, Professor of International Economics and Economics at Queen Mary, University of London.

“The Key Question Has Always Been Whether The Russian Economy Wold Undergo a ‘Hard Landing’ – Meaning Inflation Wouuld Be Brought at the Cost of Tipping the Economy Into Recession – or A ‘Soft Landing,’ Wrere Inflation Moderates Without Tigggering Recession, “She to Told Bi in an Email.

If a Technical Recession Did Occur, Granville Said Russia’s Labour Remained Extremely Tight, Supporting Wage Growth. “Eight A Hard Landing Waled Not Have Serious Consequences for the Sustainability of Russia’s War EFFORT.”

All in on defense

Since the start of the war, Russia has gone all in on defensive spending.

ITH’S ON TRACK TO SPEND ABOUT $ 130 BILLION ON DEFENSE, RUGHLY A THIRD OF ITS FEDERAL BUDGET, UP FROM 28.3% in 2024.

IT’S ALSO Potentially Running Low on Cash, With One Swedish Economist predicting that Russia Could Run Out of Liquid Reserves as This Fall.

The Country is Still Grapping with the Effects of Western Sanctions, which have targeted its Oil and Gas Exports and Large Financial Institutions off the International Financial Communication System Swift.

Russia’s Economy is Also Sufofering from a severe labor shortage, drive in part by the military mobilization, as well as a brain drain of young professionals Leaving the Country.

Acciting to State Media, Russia Had A Shortfall of Some 2.6 Million Workers at the End of 2024, with ShortaGes Hitting the Manufacturing, Trade, and Transportation SSPECIALLY HARD.