Russia’s economy
Russian Minister of Economics warns of recession
Russia has defied western sanctions for years. But now the crisis pages are increasing – and the government speaks for the first time about the risk of recession.
Russia’s political leadership unexpectedly warned of problems for the Russian economy. “According to the numbers, we have a cooling, according to the current sensations of the entrepreneurs we are already at the border to the transition to a recession,” said Economic Minister Maxim Reschetnikow at the Petersburg International Economic Forum (Spief). He criticized the policy of the central bank and warned of a break -in during the investments.
The current interest rate level demotivates to invest entrepreneurs, said Reschetnikow. The central bank recently reduced the key interest rate from 21 to 20 percent. In the third and fourth quarter, the investment could be below the previous year’s level.
Central bank chief: Resources are used up
Central banking director Elvira Nabiullina defended herself against the allegations of a false monetary policy, but she also predicted difficulties. Russia’s economy has grown for two years despite the sanctions through programs for importing imports – thanks to funds from the prosperity fund and existing investment reserves of the banking system. “We have to understand that many of these resources are actually used up and we have to think about a new growth model,” she said.
Russia has been war on Ukraine for three years. The growth of recent years was based primarily on massive upgrading and increased expenses for the military and security.
dpa
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
