Understanding Russia’s Economic Challenges: Tension, Imports, and Ruble Pressure

2023-08-03 20:53:36

This resurgence of tension is explained, in part, by the fact that public expenditure and consumption “growing faster than the economy’s capacity to expandThis phenomenon encourages Russia to turn more to imports, which contributes to putting the ruble under pressure. On July 21, the BCR raised its key rate for the first time since February 2022, to 8.5% Moreover, at the end of July, the institution estimated that, since the beginning of the conflict in Ukraine, net capital outflows (outflows minus inflows of money) amounted to 253 billion dollars since the start of the war.

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