Putin praises the strength of the Russian war economy, critics see illusions

The image of economic strength

These statistics send a message to the audience at home and abroad, says Elina Ribakova, Senior Fellow at the Peterson Institute for International Economics. To the Russian public: "We are still standing." To the allies of Ukraine: "We can hold out."

deception or reality?

However, the projection of an image of economic strength has practical consequences. Some in the western countries have questioned whether the sanctions imposed by the supporters of Ukraine - which were dismissed by President Vladimir Putin as a mere "logistical hurdles" - even. If you don't do that, why then make an effort?

other experts, on the other hand, say that this image of resistance is an illusion - a carefully curated representation of the Kremlin in order to make his opponents be able to make the Russian economy in good condition. While the war approaches his third anniversary, this masquerade begins to crumble.

metaphors for the economic situation

to explain Russia's apparent economic strength, analysts have used metaphors. Some describe growth as "on steroids", which means quick, but unnatural and non -sustainable growth. Ribakova told CNN: "'Steroids' is a good term, but it actually produces some muscle mass. However, I would not call it a muscle here. It is more like you are running around coke."

The shadow economy and its risks

The Russian economy could soon feel the negative consequences of this phase. Row -less and more dissatisfied Russian civil servants warn that the economy reaches its production boundaries, which drives prices. Inflation accelerated itself last year, even though the central bank lifted interest on 21 % in October - the highest level in two decades.