The Economy of Russia Has Hit Rock Bottom: PMI Index Falls to Record Low.

Decline in Business Activity in Russia

According to inkorr.com: The Center for Countering Disinformation reported a decrease in business activity in the Russian market in September. According to the Center's data, the PMI index, reflecting the state of industry and services, dropped to 46.6 points - the lowest level since October 2022.

Rising Costs for Russian Companies

Russian enterprises are facing a sharp increase in costs due to rising borrowing costs, increasing tax burdens, and sanctions measures. At the same time, passing these costs onto the end consumer is becoming increasingly difficult: prices are rising more slowly than production costs.

'This is yet another consequence of the Kremlin focusing on a military economy. The conditions of a full-scale war against Ukraine are leading to a redistribution of resources in favor of defense, while the 'peaceful' business sector finds itself in a state of stagnation,' the Center emphasized.

Optimistic Predictions from the Government

The Russian government expresses optimistic predictions regarding economic development, however, real data points to the fact that the country's economy is suffering from deep stagnation.

The above-mentioned facts confirm the worsening economic situation in Russia. The decline in business activity and rising costs for companies may have serious consequences for the economy. Even despite the government's optimistic statements, real economic challenges remain, threatening the further development of enterprises in the country.