Russia's economy struggles under heavy military spending and sanctions, facing potential rate hike to 25%.

Russia's economy is facing difficulties due to its war in Ukraine, with nearly 71% of state spending allocated to the military, impacting social services and causing inflation. The Central Bank of Russia has kept the discount rate at 21%, but an increase to 25% may be necessary in February 2025 if economic issues persist. Heavy defense spending, labor shortages, and Western sanctions are expected to challenge Russia's economy in the coming year.

3 months ago
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