“Potemkin villages” in russian economy begin to crumble
The false narrative of russian propaganda claiming that the economy is allegedly booming despite sanctions is becoming increasingly obvious. European economists have published a report suggesting that the russian federal state statistics service’s data on economic growth in 2023 and 2024 may be fabricated.
▫️ Experts highlight that russian authorities have significantly underestimated a key economic indicator—the inflation rate. This is supported by alternative calculations conducted by private research agencies. When adjusted for real inflation, the illusion fades—the officially reported GDP growth turns into a significant decline.
It is clear that the war and sanctions are severely draining the russian economy. As putin remains determined to prolong the war, the impact will soon be felt by every russian citizen.
Notably, the kremlin has already started to “dip into the pockets” of ordinary citizens to fund the war. As reported earlier, russia plans to increase its military budget by a quarter next year, while significantly cutting social spending.
