Russia's Economy: Heading Toward a Fate Worse Than Recession

Pro-Kremlin economists sound the alarm as the Russian economy faces an uncertain future.

Russia's economy is on the brink of a deep crisis, with pro-Kremlin economists warning of a fate worse than recession.

The Russian economy has been struggling in recent years due to a combination of factors, including Western sanctions, the COVID-19 pandemic, and the war in Ukraine. The sanctions have crippled Russia's access to international markets, while the war has led to a sharp decline in exports and a rise in government spending.

As a result, the Russian economy is expected to contract by 8.5% this year, according to the International Monetary Fund (IMF). This would be the worst economic performance since the collapse of the Soviet Union in 1991.

The pro-Kremlin economists are particularly concerned about the long-term impact of the sanctions. They argue that the sanctions will make it difficult for Russia to import the goods and technology it needs to modernize its economy.

The economists also warn that the war in Ukraine is putting a strain on Russia's budget. The government is spending billions of dollars on the war, which is reducing the amount of money available for other essential services.

The pro-Kremlin economists' warnings are a sign that the Kremlin is becoming increasingly concerned about the state of the economy. The government has so far been able to prop up the economy with fiscal stimulus, but it is unclear how long this can continue.

If the economy continues to deteriorate, it could lead to social unrest and political instability in Russia. The Kremlin is likely to face growing pressure to end the war in Ukraine and lift the sanctions.