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"Russia’s War-Torn Economy Hits Its Speed Limit" - WSJ - SCW Newswatch

"Economists see this week’s currency gyrations not as the beginning of a financial crisis but rather as a symptom of the Kremlin’s sclerotic economic prospects."

The Wall Street Journal reports on Russian economic difficulties amidst its war in Ukraine, including the Russian central bank having to raise interest rates after severe decline for the ruble.

"The Russian central bank’s jumbo interest-rate increase to halt a tumbling ruble ... points to a new reality .... The government has flooded the Russian economy with money to keep ... troops in Ukraine supplied and insulate ... businesses and citizens from the war. Thanks to the state’s largess, demand in the economy is rising, helping it recover from last year’s sanctions-induced recession. Supply — increasingly constrained by Russia’s isolation and widespread labor shortages — isn’t. That growing imbalance ... was thrust into focus ... as the ruble fell to its lowest level since the early days of the war. ... Russia’s growing technological isolation is expected to reduce ... long-term growth prospects ... [already] bleak ... before the war. The ... labor force has been shrinking ... as [Russia's] population ages. Productivity has been weak owing to a lack of investment and a business climate rife with corruption and bureaucracy. Those trends have ... worsened .... Russia ... [has] its worst labor shortage since the 1990s [after] hundreds of thousands ... mobilized for the front or ... fled the country. ..."

Click here for: "Russia’s War-Torn Economy Hits Its Speed Limit" - WSJ 8.17.23 - SCW Newswatch

Key Words: Russia, Russian Economy, Ruble, Currency, Finance, Russian Central Bank, Russo-Ukrainian War, Ukraine

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