Russia faces stagflation with slow growth, high inflation, and labor shortages due to military spending and sanctions.

Russia is confronting a potential stagflation scenario, marked by slow economic growth and high inflation, which reached over 9% in August. The Central Bank has noted labor shortages and rising costs linked to increased military spending since the Ukraine invasion. While Moscow has managed to sustain its military efforts, analysts warn that long-term challenges, including Western sanctions and a shrinking workforce, could hinder economic stability and growth.

September 12, 2024
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