ST. PETERSBURG, Russia (AP) — The Russian economy is “on the brink of recession,” according to the country’s Economy Minister, as reported by Russian media outlets. The statement was made by Economy Minister Maxim Reshetnikov during the St. Petersburg International Economic Forum, an annual event aimed at showcasing Russia’s economic strength and attracting foreign investors.
Reshetnikov reportedly stated that while current economic indicators show a slowdown, they are backward-looking. He added that based on current business sentiment and key indicators, Russia appears to be nearing a recession. The economy has been under significant strain due to a series of sanctions imposed after the Kremlin sent troops into Ukraine in February 2022. Despite this, higher defense spending has driven growth and kept unemployment low, though it has also fueled inflation. Wages have risen to keep pace with inflation, improving conditions for many workers.
Economists warn that increasing pressure on the economy could lead to stagnation, primarily due to insufficient investment outside the military sector.
— new from Laredo Morning Times