Scope Ratings sees a 0.8% contraction in Russia's economy this year, Reuters reported. This is as the country's average inflation sits at 6%, made worse by a serious labor shortage. AdvertisementRussia's economy is set to contract by 0.8% this year, as inflation remains a key burden, according to a Scope Ratings report seen by Reuters on Tuesday. That's as the Kremlin has turned to a total war economy: it has spent around 5% of Russia's GDP on the Ukraine war, while pushing for increased military production. Meanwhile, the agency also warned that Russia's war will prevent it from addressing pre-existing problems with the economy, such as weak investing, low productivity growth, and a declining population.

Source: Economic Times June 21, 2023 10:39 UTC