🚨 Russia’s Economy Enters a Critical Phase
Russia’s economy is moving into what many analysts call a “critical zone.”
This is not a sudden collapse, but a slow pressure buildup caused by long-term war spending and economic strain.
❌ What’s Hurting the Economy
High interest rates (16%+)
Business growth and home buying have slowed sharply.
Labor shortage
War casualties and migration have reduced the workforce.
Heavy military spending
Nearly 40% of the national budget is going toward defense.
Rising inflation
More money printed, fewer consumer goods available.
Russia still earns from oil exports, but the economy is under stress and relying heavily on short-term survival tactics rather than long-term growth.
⚖️ The Other Side: Why It’s Not a Total Collapse
Despite pressure, Russia still has strengths:
🔹 Industrial Shift
Sanctions forced local production. Small and mid-size businesses are replacing imports.
🔹 Low National Debt
Russia’s debt-to-GDP ratio is still low compared to many Western economies, leaving room to rebuild later.
🔹 Infrastructure Pivot
New trade routes, pipelines, and logistics links toward Asia are expanding.
🔹 Human Capital
Higher wages due to labor shortages and strong STEM focus could support future innovation.
📌 Final Take
Russia’s economy is under pressure, not dead.
If the conflict stabilizes and military production shifts toward civilian industries, the country could emerge more self-reliant, though very different from before.
The outcome depends on how long the war lasts and how oil revenues are used — rebuilding vs continued conflict.
Not financial advice.
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