Economic & Finance

Russia’s Economy at Risk: How Fighting Beyond Ukraine is Impacting Business

Russia's economy is at risk

Fighting threatens to stall Russia’s economy as fighting spills over into border regions, causing tens of thousands to flee.

Some Russian cities, such as Kursk and Krasnodar, have also experienced drone strikes. A dozen Russians have been killed.

The Russian economy’s growth outlook for 2023 may be lowered to 0.8% as a result of full-scale fighting in border regions, according to Bloomberg Economics.

In comparison, the Russian central bank forecasts growth of 2% this year, reaching prewar levels by the end of next year. The Economy Ministry estimates growth of more than 1%.

According to Bloomberg Economics, widespread hostilities in Russia’s border regions could slow economic growth as early as the third quarter.

The New York Times reported that nearly all of Shebekino’s 40,000 residents have fled, and officials have offered help to factories without workers.

There were hundreds of shells a day!” a resident told the Times. “Factories were hit! I don’t understand.”

Two pro-Ukraine Russian paramilitary groups claimed responsibility for the Belgorod raids last month, saying they want to end Vladimir Putin’s reign.

Western sanctions have already squeezed Russia’s economy, resulting in a decline in oil and gas revenues.

As a result of the falling ruble and a record labor shortage, Russia’s central bank sounded an alarm on Friday on the economy.

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Editorial Director
I'm Shruti Mishra, Editorial Director @Newsblare Media, growing up in the bustling city of New Delhi, I was always fascinated by the power of words. This love for words and storytelling led me to pursue a career in journalism. In this position, I oversee the editorial team and plan out content strategies for our digital news platform. I am constantly seeking new ways to engage readers with thought-provoking and impactful stories.


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