Russian inflation and recession risks

Russian economy is currently facing significant inflation and recession risks. The country’s inflation rate has been steadily rising, reaching 6.5% in May 2021, the highest level since 2016. This is largely due to a combination of factors, including the depreciation of the ruble, rising global commodity prices, and supply chain disruptions caused by the pandemic.

The Russian economy is also at risk of entering a recession, with the IMF projecting a 3.7% contraction in GDP for 2021. This is primarily a result of the ongoing COVID-19 pandemic, which has led to a decline in consumer spending, investment, and exports. Additionally, the country’s reliance on oil and gas exports makes it vulnerable to fluctuations in global energy prices.