Putin talks about Russia's economic stability, but is actually worried: ISW explains why

Putin talks about the stability of the Russian economy, but is actually worried: ISW explained why Irina Martsiyash

Russian President Vladimir Putin continues to emphasize Russia's economic stability and growth, while high interest rates and efforts to combat inflation suggest the Kremlin is “concerned about long-term economic stability.”

This was reported by 24 Kanal with reference to the Institute for the Study of War.

Putin declares economic growth, but figures indicate problems

At the investment forum of the Russian state bank VTB on December 4, Putin said that the Russian economy will grow by four percent by the end of 2024, and Russia's GDP grew by 4.1 percent from January to October 2024.

“Putin is likely trying to ensure economic stability, despite reports that Russia may raise its key interest rate to 25 percent in December 2024, after the Russian Central Bank already raised its key interest rate to 21 percent in October 2024,” the report says. ISW report.

Russian Central Bank Governor Elvira Nabiullina said on December 4 that the Central Bank may raise the key rate at the next meeting of the Central Bank's board of directors. “Putin tacitly acknowledged some economic problems on December 4, calling on the Central Bank to curb inflation,” analysts write.

Russian state-run publication RBC reported on December 4, citing Central Bank data, that Russians' cash savings have fallen to a historic low and “cash rubles make up only 15 percent of Russian citizens' savings.”

The Kremlin chief also boasted that Russia's unemployment rate is a record low of 2.3%. However, analysts attribute this to mobilization.

“Putin did not pay attention to the fact that youth unemployment is probably at a record low, since many young Russian men are fighting in Ukraine and that Russia is experiencing a significant labor shortage.”