Few analysts think that the Russian economy is about to collapse amidst Russian and Ukrainian War.
Russian Economy In Danger
In a report from the Guardian, observers of the Russian economy claim that the Kremlin may now have to decide whether it is worth continuing to spend at pre-war levels on public expenditure while waging a war that would cost trillions of roubles and endure unheard-of sanctions.
Russia’s central bank responded by hiking interest rates to 12%, the first time it has done so since the early stages of the conflict, when the rouble dropped last week and crossed the psychological threshold of 100 to the dollar.
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Russian Economy In Danger Of Collapse After Cost Of War Continue To Skyrocket
More than 13,000 sanctions have been placed on Russia by Western nations over the 18 months that it has been at war with Ukraine, yet the Russian economy shows no signs of imploding. In contrast, the IMF expects the nation to grow by 1.5% this year, which is greater than the economies of Germany or the UK as reported in Bloomberg.
Sanctions don’t work to the Russian economy, according to Kremlin. However, the fast declining ruble—which in August overtook the dollar as the worst-performing currency among developing nations—indicates the contrary.