Russia's economy is under significant stress due to the war in Ukraine, a new Financial Times report said Thursday. Based on a draft text conducted by the US Treasury Department, the report mentions that the Russian economy would have grown by 5% if it had not invaded its neighbor.
Besides, the invasion of Ukraine has caused an increase in domestic consumer prices, and one-third of the national budget was allocated to defense. Consequently, according to the Treasury Department's Chief Sanctions Economist, Rachel Lyngaas, the combination of the war, sanctions by US allies, and Moscow's policy responses are putting considerable economic pressure on the country.
The conflict has led to higher spending, a depreciating ruble, rising inflation, and a tight labor market due to worker emigration, significantly affecting Russia's economic performance compared to other energy-exporting countries.
