Russian economy minister acknowledges country’s economic slowdown
Pravda Ukraine
Russia’s economy has begun to slow due to high interest rates and inflation, which has already affected sales and orders across various sectors.
Source: Russian news agency Interfax
Details: “We are now seeing the first signs of cooling in the economy,” said Economy Minister Maksim Reshetnikov. He reported that in November and especially in December, economic growth ceased to be “frontal”.
The slowdown has impacted the food, chemical and woodworking industries, as well as certain sectors of mechanical engineering. The minister emphasised that businesses are reducing order volumes.
Quote: “A striking example is the automobile market, where high loan interest rates are driving down sales of passenger cars, specialised equipment and agricultural machinery.”
More details: Reshetnikov also stated that the Ministry of Economic Development, together with the Central Bank and the Ministry of Finance, is seeking a balance between curbing inflation and maintaining economic growth.
Background:
- On 14 February, the Bank of Russia decided for the second consecutive time not to change the key interest rate.
- In Russia, the likelihood is increasing that the economy could slow into a technical recession faster than inflation can be brought under control.
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