Putin Has Run Out of Moves¶
Even with the Russian economy suffering from low growth, high inflation, and relentless Ukrainian long-range drone strikes on energy infrastructure, President Vladimir Putin has thrown fiscal caution to the wind and allowed the government’s budget deficit to balloon to 2.8% of GDP. It isn’t likely to end well.
MUNICH—The broadconsensusamong Russia-watchers is that the country is facing a prolonged bout of stagflation. Growth this year is unlikely to exceed 1%, and inflation is still stuck at 6% (or more). Moreover, the most promising option for reviving the economy is the least likely to be pursued, because it requires President Vladimir Putin’s willingness to end the war on Ukraine.