There is a “unstable equilibrium” in the Russian economy, according to a research by Russian economic specialists, as the growth impulses that averted a major downturn last year have faded and new drivers have had trouble getting off the ground.
With the support of increased military output and massive state spending, Russia’s economy proved surprisingly resilient in the face of strong Western sanctions last year. However, a return to pre-conflict levels of prosperity is still a long way off.
Russian economy is shrinking
Despite efforts to promote private investment and commodity exports, the growth factors that kept Russia’s economic shrinkage to 2.1% in 2022 are weakening, according to a paper by analysts at Russia’s Centre for Macroeconomic Analysis and Short-term Forecasting.
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