Russia’s economy is setting records that threaten it with stagnation and other crises
21 November 2024 15:08
Russian Central Bank Governor Nabiullina has announced the exhaustion of almost all economic resources. This was reported by The Moscow Times, according to "Komersant Ukrainian".
According to the head of the central bank, almost all available resources in the Russian economy have been used up, and this is the first time the country has found itself in such a situation: the unemployment rate has dropped to a historic low of 2.4%, and the shortage of personnel continues to grow.
“We have never had such low unemployment. And there are few countries where it has ever been so low,” Nabiullina said.
According to surveys conducted by the Central Bank of the Russian Federation, 73% of enterprises are experiencing a staff shortage, and the level of capacity utilization at factories, according to the Federal State Statistics Service, has exceeded 80%, which is also a historical record.
According to Nabiullina, when the economy reaches the limits of its production capacity, but demand continues to be stimulated, stagflation occurs, i.e. a crisis state of the economy in which stagnation in production occurs simultaneously with inflation.
As Nabiullina explained, to avoid this risk, the Central Bank of Russia is raising the key rate.
Next year, according to the forecast of the Central Bank of the Russian Federation, the economy may be on the verge of stagnation: GDP will increase by only 0.5-1%, and the growth rates of investment and private consumption may be zero.
The International Monetary Fund predicts a threefold slowdown in the Russian economy – from 3.9% growth this year to 1.3% next year.
