Russia economy meltdown looms as Putin is handed dire stagflation warning

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Posted on 11/14/2024 7:35:37 AM PST by marcusmaximus

The price of potatoes - a staple of the Russian diet - have increased by 64 percent this year, according to the latest figures.

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Sergei Chemezov, who is the CEO of the state-owned defence giant Rostec, warned that sky-high interest rates are eroding business profitability and could lead to widespread bankruptcies. TsMAKP echoed these concerns.

He cautioned that “the current high interest rate and the prospect of further increases create a risk of economic downturn and a collapse in investments.”

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Recent data showed a 3.1% contraction year-on-year in the latest quarter, with more slowdowns expected as war-related disruptions and stringent monetary policies stifle activity and weaken domestic demand.

Analysts at Capital Economics expect Russia’s central bank to increase the interest rate to 22% in the coming month, predicting that inflation will stay elevated and that the Kremlin may face an economic scenario with few, if any, effective options.

(Excerpt) Read more at express.co.uk ...

To: marcusmaximus

2 posted on 11/14/2024 7:36:42 AM PST by JonPreston ( ✌ ☮️ )

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