Business

Russia's economy is on the brink of collapse as inflation and interest rates have reached unprecedented highs.

On Wednesday, the Center for Macroeconomic Analysis and Short-Term Forecasting criticized Moscow’s restrictive monetary policy, warning that it could soon lead to persistent inflation and slower growth.

Recently, interest rates in Russia hit 21%, a spike that has severely impacted the country’s economic situation. The relentless rise in inflation has also driven up food prices, with the cost of potatoes, for example, surging by 64% this year.

Earlier this year, several CEOs from Russia’s largest companies warned the Kremlin that numerous businesses risk permanent closure due to the country’s dire economic conditions.

Sergei Chemezov, CEO of the state-owned defense giant Rostec, argued that "the current high interest rate and the prospect of further increases create a risk of economic downturn and a collapse in investments."

(QG - Source : The Daily Express / Picture: © Unsplash)