Source link : https://earth-news.info/general/russias-besieged-economy-is-clinging-on-the-economist/
Russia’s economy stands at a precarious crossroads, grappling with the relentless pressure of international sanctions and sustained geopolitical isolation. Despite the significant challenges posed by Western economic restrictions and the disruption of global trade ties, Moscow’s financial system has shown unexpected resilience. In this report, The Economist examines how Russia’s economy is managing to cling on amid mounting difficulties, exploring the coping mechanisms, structural shifts, and the uncertain outlook facing the nation in a protracted crisis.
Russia Faces Mounting Economic Isolation Despite Resilience
Even as Russia grapples with an expanding web of sanctions and diplomatic setbacks, its economy demonstrates an unexpected degree of tenacity. Key sectors such as energy and agriculture continue to generate substantial revenues despite growing constraints on technology imports and international financing. This resilience, however, is not without limits: supply chains are increasingly fragmented, and foreign investment remains scarce. Domestically, the government has accelerated efforts to substitute imports and foster local production, but these measures often come at the cost of efficiency and innovation, raising concerns about long-term growth.
Economic Challenges in Numbers:
- Inflation rate holding steady near 12%, straining household incomes
- Foreign direct investment down by over 60% compared to pre-sanctions levels
- Energy exports remain the primary…
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Author : earthnews
Publish date : 2025-09-24 14:20:00
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