1 year ago
Russian Economy on Brink of Recession: Challenges Ahead
Russia's economy is starting to slow down because of less demand for goods, a strong currency making exports expensive, and rising prices.
The manufacturing sector is struggling, causing companies to cut jobs.
Even though the central bank has lowered interest rates, the economy is still at risk of going into a recession.
This might affect how the government spends money and could impact the war in Ukraine.
Russia's manufacturing sector contracted sharply in June, with the PMI falling to 47.5.
The downturn was driven by weak client demand and a strong ruble making exports pricier.
Factories are cutting jobs and scaling back purchasing activity.
Inflation remains above the Central Bank's target, prompting interest rate cuts.
Economic Minister warned Russia is "on the brink" of recession.
- Who
- Economy Minister Maxim Reshetnikov
- What
- Russia's economy is showing signs of a slowdown.
- Where
- Russia
- When
- June 2025
- Why
- Due to manufacturing declines, inflationary pressures, and a strong ruble.
Economic Challenges
Economic Stability
Priorities
Economic Challenges
Sluggish Economy
Economic Stability
Focus on Military Spending
Key facts
- Manufacturing PMI (June)
- 47.5
- Inflation
- Remains above Central Bank target
- Interest Rate (June)
- Cut to 20%
- Interest Rate (July)
- Cut to 18%
- Economic Outlook
- On the brink of a recession
