Russia’s economy is in worse shape than Ukraine’s. Russian Central Bank head Nabiullina admits it has nearly exhausted its resources.
Addressing parliament today, Nabiullina complained about
1. No people left. A record-low unemployment at 2.4%, worsening labor shortages 1/
Addressing parliament today, Nabiullina complained about
1. No people left. A record-low unemployment at 2.4%, worsening labor shortages 1/
73% of enterprises face labor shortages 2/
2. Production at its limits. Factory capacity utilization surpasses 80%, a record high 3/
“When an economy reaches the limits of its productive capacity while demand continues to be stimulated,” Nabiullina warned, “stagflation arises.” 4/
3. Credit bubble and isolation. Rising interest rates are driving up credit costs, commodity industries are losing Western markets, and defense factories are running at full capacity 5/
4. Slowing GDP growth. GDP growth slowed to 3.1% in Q3, down from 4.1% in Q2 and 5.4% in Q1. 6/
5. Stagflation. The Central Bank predicts near-stagnation next year, with GDP growth of 0.5%-1% and flat investment and private consumption. 7/
Bloomberg says that Russia’s elite describe grim economic conditions: Western company exits have weakened industrial capacity, import substitution lags, and mass mobilization has worsened labor shortages. 8/
Source in Russian X moscowtimes.ru/2024/11/19/nab…
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