Russia's economy under pressure: ruin decline and impending bankruptcy!

Russia's economy under pressure: ruin decline and impending bankruptcy!

The economic situation in Russia remains tense, while the ruble is still under pressure. The Russian central bank recently increased its key interest rate from 8.5 to 12.0 percent in response to the dramatic decline in the ruble. This measure was taken to secure price stability, but inflation has already increased to around 9 percent. Experts assume that the interest rate increase will not solve the fundamental problems of the ruble drop, which indicates a real "collapse" of the Russian currency, as Welt.de

Despite the rate increase, the economic uncertainty remains in Russia. Many entrepreneurs rate the high interest rates as the greatest risk of their business, while a significant part of their profits flows into loan interest. At the same time, an increasing fleeing of capital also moves capital from the country, which further weakens the ruble. The Russian central bank is optimistic and predicts a weak economic growth of only 0.5 to 1.5 percent in 2025, while inflation and uncertainty continue to increase.