GDP Falling and Inflation: As Putin's mobilization will affect the economy of the Russian Federation
About it reports Bloomberg. Viewers write that mobilization will break from the workplace of about every hundredth active worker and will not be easy to replace them, even against the backdrop of tangible unemployment in the country. "Mobilization is a strong negative shock for consumer moods. We will see a strategy for abandoning unnecessary purchases and a deep fall in demand," - says the economist of the investment company "Renaissance Capital" Sofia Donets.
According to her, this fall occurs on the background of 0. 5% of GDP in Russia in 2022. In addition, the fall of GDP will accompany inflation, and despite the fact that the country's economy has withstood large -scale sanctions imposed by the United States and their allies due to the invasion of the Russian Federation into Ukraine, the overall economic decline will be observed for at least for the next five years.
At the same time, the Russian government is still expected to reduce the economy for about 3% this year and 1% the next, but inflation will be much higher than the planned. Many companies are trying to prevent their employees from considering, as the labor market is in a tense state. Managers want to save their valuable workers on the ground.
In this regard, the Russian Union of Industrialists and Entrepreneurs (RSPP) appealed to the government to expand the list of categories of citizens to be delayed from service in the army, since the list does not cover many large industrial industries. According to Natalia Zubarevich's MSU economist, most recruits are likely to be from rural areas, which will hit the farm and construction sectors.
However, employees of the high -tech sector, who were previously said that their employees would not call for mobilization, were also mobilized. To cope with economic problems, the Russian government promises to increase assistance for families of conscripts, but it will not significantly affect the overall picture.
According to Zubarevich, in the long run the mobilization and an increase in the number of dead and wounded during the war will reduce and so a small cohort of Russians at a working age, which will inevitably affect the economic potential of the Russian Federation. Earlier it was reported that President Vladimir Putin said in front of the cameras that Russia was coping with the "economic blitz" of Western countries.