„The real situation is worse,” says the Russian economist

Russian President Vladimir Putin.
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  • Russian economist Igor Lipsits told Reuters that the „real situation” in Russia’s economy was dire.
  • The upbeat announcements by Russian officials are aimed at pleasing the Kremlin, he said.
  • About 14% of Russians live below or on the brink of poverty, he added.

The Kremlin is painting a rosy picture of the country’s economy despite Western sanctions — but „the real situation is dire,” said Igor Lipshits, a prominent Russian economist. Reuters.

Official Rossiy announcements on the Russian economy are not a good gauge of how the Russian economy is doing because officials are trying to please the Kremlin, Lipchitz added.

The economist confirmed the comments to Business Insider.

Lipchitz’s comments shed some light on Russia’s wartime economy, which was growing on the back of massive military and government spending. The event has confounded many economists who had expected it to fall after Moscow’s invasion of Ukraine in February 2022.

Russia’s GDP grew 5.5% in the third quarter from a year ago – reversing a 3.5% decline in the same period last year. Official ratings program.

But this development has not translated into prosperity for many Russians on the ground.

„A large part of the Russian population has very low wages,” Lipsitz told the news agency.

It doesn’t help that Russia’s central bank raised it The prime rate of interest is 15%. to give props A weak ruble It has fallen 16% against the dollar this year – meaning many people are taking on more debt.

Meanwhile, inflation in Russia suffered 11.9% last year and is predicted to reach 7.0% to 7.5% this year.

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About 20 million people in Russia – or 14% population — are on the brink of poverty or already in poverty, Lipchitz said.

Official statistics 15.7 million people in Russia lived below the poverty line of 14,184 rubles, or $162 per month, in the second quarter of this year.

Lipchitz told Reuters he expected economic stagnation – at least – and a sharp decline after the country’s presidential election in March. Incumbent President Vladimir Putin is expected to win this election.

Outside of Russia, Lipchitz was a professor at Moscow’s prestigious HSE University. He left the institution on September 1 after the school administration unilaterally canceled his remote work contract. telegram.

Lipchitz is best known for writing Russia’s economics textbook, which has been used by high school students for two decades. Ministry of Education of Russia Abandoned in 2019 After its experts decided that some of its content was not patriotic enough.

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