Bloomberg believes that the Kremlin’s desire to increase army recruitment may negate this possibility.
Russia’s economy could return to its pre-war levels next year if it adapts to the impact of international sanctions. However, the Kremlin’s desire to increase recruitment into the army may negate this possibility. This was reported by Bloomberg news agency on Friday, July 11.
Prime Minister Mikhail Mishustin said the economy grew by about 4.6% in the second quarter and 1.5% in the first half. Media suggests Russia’s economy has grown for four straight quarters after falling more than 4% last year, despite forecasts of a prolonged slowdown in response to sanctions imposed in connection with the invasion. in Ukraine in February 2022.
Adding to Russia’s woes is a growing labor shortage as the Kremlin seeks to enlist as many volunteers as possible in President Vladimir Putin’s 18-month invasion of Ukraine.
The exchange rate of the Russian ruble is approaching 100 units of the national currency of the Russian Federation per dollar after weakening by almost 25% since the beginning of the year. The head of the central bank, Elvira Nabiullina, believes that this is due to the deterioration in terms of foreign trade.
Natalya Lavrova, chief economist at BCS financial group, suggests the economy could reach pre-war size by the middle of next year.
The Central Bank of Russia recently raised its annual growth forecast to 1.5-2.5% for 2023, while noting that output in most sectors focused on domestic demand has reached or even exceeded pre-war levels. Growth is estimated at 0.5-2.5% next year and 1-2% in 2025.
It will be remembered that the European Commission in July this year said that the sanctions of the European Union against Russia will increase over time and this will have a longer-term effect on the Russian economy.
Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.