The main factors of the crisis are the high interest rates of the central bank of the Russian Federation, the pressure penalty and the investment reduction.
The Russian economy is approaching the departure: In February, the growth of industry production fell to the lowest 0.2% in the annual scale. It is 11 times less than January (2.2%), and almost 30 times less than the fourth quarter of 2023 (5.9%). The Moscow Times reported on Thursday, March 27.
Despite the Boom in the Military -industrial Complex – the manufacture of shells and bombs increased by 22.5%, and military equipment by 33.6% – civilian industries were crisis. The manufacture of clothing and shoes was reduced by 0.5% in February and 1.8% to two months. The food industry fell 3%, and the production of drinks – by 11.3%. Middle-bore mining has been reduced by 4.9% due to penalties and restrictions on OPEC+.
“The economy is approaching the fracture point,” Vasily Osmakov, Deputy Minister of Industry of the Russian Federation, told the Federation Council. The analysts of the Center for Macroeconomic Analysis and forecasts note that the growth of tanks and bombs will no longer pay for the collapse of the civilian industries.
According to economists, in February, the GDP of the Russian Federation may fall below last year’s level.
The main factors of the crisis are the high interest rates of the central bank of the Russian Federation, penalty for the pressure and reduction of investments. This leads to a credit compression and the growth of loan loading, which can cause a wave of losses in the first half of the year.
Moreover, Truce in Ukraine, which the Kremlin discusses in the West, can only exacerbate problems.
The Russian economy has become dependent on military spending, and the reduction of the defense budget will dangerous to thousands of jobs in the military -industrial complex. At the same time, the technological lag and penalties created the requirements for the crisis according to the the USSR’s scenario in the 1980s, the analysts warned.
Remember that Russia completed last year with a note in recent years by budget shortage, worth 3.5 trillion rubles.
Russia’s economy on the edge of the collapse
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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.