Putin’s decision is hitting the Russian economy. Great braking of indicators
The successive sanctions against Russia did not significantly affect the stability of the country’s economy, and the regime seemed to be kept in check thanks to energy prices. However, cracks are starting to appear now, especially after Putin ordered in September “partial mobilization” of 300,000. military reservists, which caused many Russians to flee the draft.
“The recovery in economic activity stopped in September,” the Russian central bank said in the report, stressing that by the end of the month economic conditions had deteriorated. The report did not address the numerous escapes of citizens before being appointed, but stressed that The mobilization created new challenges for production processes and production maintenance. Its authors also noted that Putin’s decision “will negatively affect consumer and business confidence”.
The central bank also announced that partial mobilization may make it difficult for companies to recruit workers in Russiawhere unemployment hit a record low, stifling economic activity in the coming months. Independent estimates recently reported by the Washington Post report that as a result of the mobilization announced by Putin, about 300,000 people fled from Russia people.
“Russian consumers seem vulnerable to the economic impact of the invasion.”
The September decline in Russian consumer and business confidence followed a summer recovery, according to a report by the analyst firm Morning Consult. For the first time since the beginning of the Russian aggression against Ukraine, “Russian consumers seem vulnerable to the economic impact of the invasion,” said Morning Consult in a study for Business Insider.
The Russian central bank drew similar conclusions and wrote about them in the presented report. As noted, falling consumer sentiment may “temporarily halt” the recovery in consumption at the beginning of the fourth quarter of 2022.
“September events will not necessarily push Russia into immediate recession, but the challenges are increasing.” – Morning Consult analysts conclude.
Author: Huileng Tan
Translation: Paweł Pązik
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