Please ensure Javascript is enabled for purposes of website accessibility

Poll: Katie Porter Holds Early Edge in California Governor’s Race

3 hours ago

Just 38% of Americans Support Trump’s Use of Troops to Police DC, Reuters/Ipsos Poll Finds

4 hours ago

Families Leave Gaza City After Night of Bombardment, Israelis Protest

6 hours ago

California Farming Couple Seeks $300 Million for Aspen Estate

7 hours ago

Trump Administration Cannot Sue Maryland Federal Judges Over Immigration Order, Judge Rules

7 hours ago

California Republicans Sue to Block Congressional Redistricting Plan

23 hours ago

Trump To Sign Executive Order Directing AG To Prosecute Flag Desecration

1 day ago

Fresno County DUI Crash Sends Car Into Embankment Near Highway 99

1 day ago
Russia’s Economy Is Slowing, Opening Fissures Over Policy
d8a347b41db1ddee634e2d67d08798c102ef09ac
By The New York Times
Published 9 months ago on
December 2, 2024

Russian President Vladimir Putin listens to acting Governor of Kursk region Alexei Smirnov during a meeting via videoconference at the Novo-Ogaryovo state residence outside Moscow, Russia, Thursday, Aug. 8, 2024. (AP/Gavriil Grigorov)

Share

Getting your Trinity Audio player ready...

BERLIN — The wartime economy that Russia spurred into overdrive is slowing, causing tensions among the country’s economic elites as the war with Ukraine approaches its fourth year.

Many Russian civilian industries have stopped growing, and some had even gone into decline by October, according to the latest official data. The country’s currency, the ruble, dropped to its weakest level in two years last week, and businesses say they are struggling to get new loans or to get paid by clients.

The central bank sharply raised the country’s benchmark interest rate in October to 21%, the highest since the end of the Soviet Union, in an attempt to dampen inflation.

Last month, the central bank also lowered its forecast for Russia’s economic growth next year to 0.5% to 1.5%, compared with 3.5% to 4% this year. The slowdown comes even as the government continues to pump record amounts of money into the economy to finance the war.

Russia’s Economy Moving Toward Stagflation

The combination of rising prices and falling economic activity has led some economists and officials to warn that the Russian economy is moving toward stagflation, a quagmire where prices rise quickly without growth.

Western nations have subjected Russia over the past three years to some of the strictest economic sanctions in modern history to punish President Vladimir Putin for his invasion of Ukraine.

Russia’s slowing growth and rising inflation, economists say, show that the sanctions are having an impact, putting a dent in the stimulating effect that the Kremlin’s enormous wartime spending has had on the economy, they say.

Civilian companies are particularly feeling the pinch. The Russian Railways, the country’s largest employer, which transports a large share of the nation’s goods and passengers, reported its freight volume fell almost 9% in October compared with a year ago. To compensate for falling demand, the company is raising prices more than 10% in December, and trimming planned investment for 2025 by a third.

Still, the data suggest that the economic strains are still far from provoking the kind of crisis that might compel Putin to curtail his ambitions in Ukraine.

This article originally appeared in The New York Times.

By Anatoly Kurmanaev
c. 2024 The New York Times Company

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Meta to Launch California Super PAC Backing Pro-AI Candidates

DON'T MISS

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

DON'T MISS

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

DON'T MISS

Leaked Audio Reveals Ex-Israeli Intelligence Chief Calling Gaza Deaths ‘Necessary’

DON'T MISS

Texas GOP Congressional Candidate Burns Quran With Flamethrower

DON'T MISS

Madera County Authorities Arrest Army Sergeant in Child Sexual Abuse Material Investigation

DON'T MISS

California High-Speed Rail Project Hit With New $175 Million Cut

DON'T MISS

Poll: Katie Porter Holds Early Edge in California Governor’s Race

DON'T MISS

Fresno Restaurateur Bobby Salazar Charged by Feds With Arson

DON'T MISS

Just 38% of Americans Support Trump’s Use of Troops to Police DC, Reuters/Ipsos Poll Finds

UP NEXT

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

UP NEXT

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

UP NEXT

Leaked Audio Reveals Ex-Israeli Intelligence Chief Calling Gaza Deaths ‘Necessary’

UP NEXT

Texas GOP Congressional Candidate Burns Quran With Flamethrower

UP NEXT

Madera County Authorities Arrest Army Sergeant in Child Sexual Abuse Material Investigation

UP NEXT

California High-Speed Rail Project Hit With New $175 Million Cut

UP NEXT

Poll: Katie Porter Holds Early Edge in California Governor’s Race

UP NEXT

Fresno Restaurateur Bobby Salazar Charged by Feds With Arson

UP NEXT

Just 38% of Americans Support Trump’s Use of Troops to Police DC, Reuters/Ipsos Poll Finds

UP NEXT

US to Seek Death Penalty in Washington D.C. Homicide Cases, Trump Says

Leaked Audio Reveals Ex-Israeli Intelligence Chief Calling Gaza Deaths ‘Necessary’

1 hour ago

Texas GOP Congressional Candidate Burns Quran With Flamethrower

1 hour ago

Madera County Authorities Arrest Army Sergeant in Child Sexual Abuse Material Investigation

1 hour ago

California High-Speed Rail Project Hit With New $175 Million Cut

2 hours ago

Poll: Katie Porter Holds Early Edge in California Governor’s Race

3 hours ago

Fresno Restaurateur Bobby Salazar Charged by Feds With Arson

3 hours ago

Just 38% of Americans Support Trump’s Use of Troops to Police DC, Reuters/Ipsos Poll Finds

4 hours ago

US to Seek Death Penalty in Washington D.C. Homicide Cases, Trump Says

4 hours ago

ICE Is Suddenly Showing Up in CA Hospitals. Workers Want More Guidance on What to Do

4 hours ago

Coarsegold Elementary Briefly Locked Down After Student Brings Starter Pistol

4 hours ago

Meta to Launch California Super PAC Backing Pro-AI Candidates

Meta said on Tuesday it will launch a California-focused political action committee to back state-level candidates favoring lighter regulati...

3 minutes ago

3 minutes ago

Meta to Launch California Super PAC Backing Pro-AI Candidates

7 minutes ago

Poll: Californians Overwhelmingly Reject Trump’s Immigration Policies

32 minutes ago

Fresno Leaders Voice ‘Full Support’ for Pismo’s Restaurant Manager in ICE Custody

1 hour ago

Leaked Audio Reveals Ex-Israeli Intelligence Chief Calling Gaza Deaths ‘Necessary’

Texas congressional candidate Valentina Gomez posted a campaign video burning the Quran with a flamethrower while vowing to “end Islam,” sparking swift condemnation. (Video Screenshot)
1 hour ago

Texas GOP Congressional Candidate Burns Quran With Flamethrower

A U.S. Army sergeant was arrested on Saturday, August 23, 2025, on felony charges of possessing child sexual abuse material following a months-long investigation aided by federal and military authorities. (Madera County SO)
1 hour ago

Madera County Authorities Arrest Army Sergeant in Child Sexual Abuse Material Investigation

A drone view of a California High-Speed Rail Bridge as it crosses over the Fresno River in Madera, California, U.S. June 7, 2025. (Reuters File)
2 hours ago

California High-Speed Rail Project Hit With New $175 Million Cut

Katie Porter speaking at the CADEM Endorsing Convention General Session Senate Candidate Interviews Saturday afternoon.
3 hours ago

Poll: Katie Porter Holds Early Edge in California Governor’s Race

Search

Help continue the work that gets you the news that matters most.

Send this to a friend