Russia economy meltdown as central bank reveals GDP tanking | World | News
The Russian economy was another coup since the Central Bank has reduced interest rates after setting out a narrowed GDP. As the Russian Bank slowed down the growth and increased the budget deficit against the war against Ukraine, it reduced the criterion interest rate to 17% on Friday to 17%.
Previously, he had increased his key rate to 21% to combat inflation, but he began to withdraw due to complaints from business leaders and legislators about his impact on economic activity. Inflation decreased in July and August, but now remained at 8.2%. The Central Bank warned that “inflation expectations have not changed significantly in recent months.” He said: “They remain high in general. This may prevent a sustainable slowing in inflation.”
This announced that a report made by the Russian Bank shrunk in the first and second quarter of this year, that is, the definition of a technical recession.
Russian Economy Minister Maxim Reshetnikov warned that in June, a country’s stagnation was “on the verge of”.
Despite the winning evidence, the Central Bank Governor Elvira Nabiullina argues that Russia is not in stagnation. He claimed that other factors such as employment, real income, consumer demand and industrial production were stronger.
He said: “We really cool the economy. This is natural when the production capacity has to capture the demand when leaving overheating.”
Growth up to the year slowed down to 1.1% in the second quarter of this year, 1.4% in the first quarter and 4.5% at the end of last year.
Open, in the January-July period, increased by 1.1 trillion rubles (£ 9 billion) compared to the previous year and rose to 4.9 trillion rubles (£ 43 billion).
According to the Kyiv School of Economics, which followed the Russian economy and oil revenues, it was 129% of the planned amount.
Meanwhile, oil and gas revenues fell by 19% compared to the previous period due to the previous period due to loose global oil prices.
