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Recession is probably a bit meaningless at this point. The Russian economy is already quite small in relation to the country size and population. They have plen
by jemmyw 1y ago
Recession is probably a bit meaningless at this point. The Russian economy is already quite small in relation to the country size and population. They have plenty of natural resources though, and oil which they are exporting. In many ways it's an economy that comes pre-collapsed. But the govt has a lot of leeway to keep the internal economy going. Interest rates are 20%, without which inflation would be running away - although, they have capital controls and are disconnected from the majority of the world's financial systems so how much sense does currency conversion have anyway?
At some point things will have to come to a head because civilian businesses, military manufacturing and military service are competing for the same workforce, one of those actually consuming the people. The govt can keep things going for a long time under difficult conditions though. More of a concern is probably what happens when the war ends. Can they even let the war end now? They have a war economy and going back is going to be hard.