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Putin grows war economy, but incomes suffer losses

A recent central bank survey reveals 28% of respondents struggle to afford basic necessities, exacerbated by surging inflation exceeding the 4% target and soaring interest rates at 16%.

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Putin to tighten his grip over power following election

MOSCOW, March 14: Putin’s ambitious economic plans, aiming for a “decisive breakthrough” in living standards during his 2018 re-election bid, face scrutiny as Russians again head to the polls.

Promising over 11.5 trillion roubles ($125 billion) in spending on various fronts, from mortgage aid to public infrastructure upgrades, Putin highlights Russia’s GDP growth outpacing G7 nations despite sanctions due to the Ukraine conflict.

However, the reality paints a bleaker picture, with a war-focused economy grappling with labor shortages, population decline, and stagnant incomes.

Despite a nominal 7.6% rise in real incomes since 2018, they remain below 2013 levels, earning the period the label of a “lost decade” by economists.

A recent central bank survey reveals 28% of respondents struggle to afford basic necessities, exacerbated by surging inflation exceeding the 4% target and soaring interest rates at 16%.

Notably, rising egg prices prompted Putin’s unusual public apology in December, reflecting the economic strain faced by ordinary Russians.

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