Politics

Vladimir Putin has acknowledged that the sanctions imposed on Russia since the start of the war in Ukraine have created significant economic challenges.

The head of state made this admission following the Russian central bank’s decision to raise interest rates to 21%—a record high since hostilities began in Ukraine in February 2022.

Despite these heavy sanctions, the IMF has projected that Russia will see 3.2% economic growth in 2024, a point the Russian leader highlighted during a conference with other government officials.

This economic growth is largely driven by increased military spending, but a labor shortage—exacerbated by high casualties in Ukraine and the refusal of many Russians to join the military—has led to strong inflation.

Central Bank Governor Elvira Nabiullina, who attended the meeting, stated last week that a tighter monetary policy will be necessary next year.

Inflation in the country now stands at 8.6%, double the central bank’s previous estimate.

(QG - Source : Newsweek / Picture: © Pixabay)