The article discusses the current state of Russia's economy, which has been heavily impacted by the ongoing war with Ukraine. The economic hardship is taking a toll on ordinary Russians, with many expressing pessimism about the future. Despite this, experts believe that Russia should be able to maintain its surge in military expenditure and continue paying for the war at least in the short term.
The article highlights several key points:
1. Economic optimism has softened as inflation rates have risen and economic conditions have worsened.
2. The Russian government is taking steps to raise taxes and print money to fund the war effort.
3. Russia's military expenditure as a share of GDP has doubled to more than 7% since the start of the war.
4. The country has access to borrowing options due to its relatively low stock of debt, but access to international markets has been cut since the invasion.
5. Much depends on what happens to oil prices, which could impact Russia's ability to maintain the war effort.
Overall, the article suggests that while Russia's economy is facing significant challenges, the country's leaders may be able to find ways to continue funding the war effort in the short term. However, this optimism may be tempered by concerns about growing economic discontent and potential political instability.
The article highlights several key points:
1. Economic optimism has softened as inflation rates have risen and economic conditions have worsened.
2. The Russian government is taking steps to raise taxes and print money to fund the war effort.
3. Russia's military expenditure as a share of GDP has doubled to more than 7% since the start of the war.
4. The country has access to borrowing options due to its relatively low stock of debt, but access to international markets has been cut since the invasion.
5. Much depends on what happens to oil prices, which could impact Russia's ability to maintain the war effort.
Overall, the article suggests that while Russia's economy is facing significant challenges, the country's leaders may be able to find ways to continue funding the war effort in the short term. However, this optimism may be tempered by concerns about growing economic discontent and potential political instability.