ISW: Problems have arisen in the Russian economy despite Putin's statements.

The Institute for the Study of War expressed doubts about the stability and growth of the Russian economy, despite statements from President Vladimir Putin. In particular, experts point to inflation, declining savings, and labor shortages as serious problems for the country.

As part of the investment forum of the Russian state bank 'VTB' on December 4, Putin stated that economic growth is expected to reach 4% by 2024, and since the beginning of the current year, GDP has already increased by 4.1%. However, he also urged the Central Bank to reduce inflation, thus confirming the existence of problems.

The head of the Central Bank of Russia, Elvira Nabiullina, stated that at the next meeting, the bank's key interest rate may be raised, which already reached 21% in October, to 25% in December 2024. According to the Russian publication RBC, the available cash savings of citizens have dropped to a historic low, and their share in total savings is only 15%.

Putin emphasized that the unemployment rate in Russia is extraordinarily low - 2.3%. However, experts associate this with mobilization and do not take into account the high unemployment rate among the youth, as many young Russian men are fighting in Ukraine, as well as the fact that Russia is facing a serious labor shortage.