As the prolonged conflict continues, Russian President Vladimir Putin is confronted with increasingly difficult decisions at home, driven by mounting pressures on the nation’s economy. The war effort has placed significant strain on financial resources, leading to rising inflation, labor shortages, and growing public discontent. Government spending on military operations has surged, diverting funds from critical domestic programs and infrastructure. Analysts note that while official data shows modest GDP growth, the real economic burden is being felt by ordinary citizens through higher living costs and tighter fiscal policies. With Western sanctions still in place and export channels disrupted, Moscow faces challenges in sustaining long-term economic stability. The central bank has responded with aggressive interest rate hikes, but these measures risk slowing consumer spending and business investment. Meanwhile, internal migration of skilled workers to neighboring countries and conscription-related disruptions have further weakened labor market resilience. The Kremlin appears to be balancing between maintaining war momentum and preventing social unrest, a delicate act that could shape Russia’s political and economic trajectory in the coming years.
— news from Financial Times
— News Original —
Putin faces tough choices at home as strain on Russia’s war economy mounts
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