Russias economy is teetering on the verge of economic crisis, Economy Minister Maxim Reshetnikov alerted Thursday, casting a downbeat tone over the annual St.
Petersburg International Economic Forum (SPIEF), an essential event aimed at drawing in investment to the country.Speaking on the 2nd day of the online forum, Reshetnikov said present business belief and indicators indicate a looming recession.
Overall, I think we are on the edge of a recession, he told journalists.
Everything else depends upon our choices, he included, prompting Russias Central Bank to show a little love for the economy.
Russias economy has been marked by volatility because it released its full-scale invasion of Ukraine in February 2022, with growth now slowing after a period when record defense costs resulted in overheating.
While officials reported strong growth in 2023 and early 2024, financial experts have warned that war-driven development is unsustainable and does not show real gains in productivity.Russias GDP grew just 1.4% year-on-year in the first quarter of 2025, the weakest rate in 2 years.Reshetnikovs remarks come amidst extensive concern over the countrys high interest rates and industrial downturn.
The Central Bank raised its crucial rate to 21% in October to suppress inflation, preserving that level up until earlier this month when it made a modest cut to 20%.
Inflation stays high, driven by state spending and labor lacks.
While yearly inflation dipped listed below 10% in May, it has actually remained more than double the Central Banks 4% target for over a year.A Message from The Moscow Times: Dear readers, We are dealing with extraordinary challenges.
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