- Russian economist Igor Lipsitz told Reuters that the “real situation” in Russia’s economy is bad.
- The Russian authorities’ rosy announcements are aimed at pleasing the Kremlin, he said.
- He added that about 14% of Russians live below the poverty line or are on the brink of poverty.
Although the Kremlin paints a rosy picture of the country’s economy even in the midst of Western sanctions, “the real situation is bad,” said Igor Lipsitz, a prominent Russian economist. Reuters.
Lipsitz added that official rosy statements about the Russian economy are not a good gauge of the state of the Russian economy, as the authorities are only trying to please the Kremlin.
The economist confirmed the comment to Business Insider.
Lipschitz’s comments shed light on Russia’s seemingly resilient wartime economy, which is booming on the back of massive military and state spending. This phenomenon has puzzled many economists who had predicted an economic collapse after Russia’s invasion of Ukraine in February 2022.
Russia’s gross domestic product increased by 5.5% year-on-year in the third quarter, reversing the 3.5% decline in the same period last year. official estimate show.
However, this growth has not translated into wealth for many local Russians.
“The wages of the majority of Russian citizens are very low,” Lipsitz told the news agency.
It doesn’t help that the Central Bank of Russia has raised interest rates. Raise the main interest rate to 15% to support weak ruble It has fallen 16% against the dollar this year. This means that many people have large amounts of debt.
Meanwhile, inflation has hit Russia Last year it was 11.9% is predicted to reach This year it is 7.0-7.5%.
Russia has about 20 million people, or 14% of its population. population —They are on the brink of poverty or already in poverty, Lipsitz said.
official statistics According to the study, 15.7 million people in Russia lived below the poverty line of 14,184 rubles ($162 per month) in the second quarter of this year.
Lipsitz told Reuters he expected at least an economic downturn and a deep recession after the presidential election in March. Incumbent leader Vladimir Putin is expected to win the election.
Lipsitz, who is based outside Russia, was a professor at Moscow’s prestigious HSE University. He announced his resignation from the school on September 1, after the school’s management unilaterally terminated his remote work agreement. telegram.
Mr. Lipsitz is known for writing a Russian economics textbook that was used by high school students for 20 years.Ministry of Education of Russia Dropped in 2019 This is because experts judged that some of the content was not patriotic enough.
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