this post was submitted on 15 May 2025
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Russia:
Report:
They acknowledge 9% inflation, but real inflation is probably twice that. And now you have about -6% GDP.
Add to that the vast increase in War costs, probably taking up 10% more of the economy, and suddenly you Have about -16% real GDP.
But even that is probably not the whole picture, because Russia is using every trick in the book to hide how bad the economy really is.
This is somewhat covered by cannibalizing everywhere they can, and cutting on maintenance and repair everywhere.
They are also cutting on social services and benefits, so it is very hard now for pensioners to survive without help from family etc.
Decreasing oil incomes will make it even worse this year, and the Russian government is running at a deficit it is getting more an more difficult to cover.
In short the Russian society is deteriorating FAST now! And Allegedly Putin has been out recently to warn the population to prepare for war. Probably not because they can do much more than they already do, but because the population needs to prepare for a really rough time economically, and for public services that don't functions as they should.
Russia even did something completely new. They're letting new recruits write off private debt!
As in, you owe me 76.000 euros for, I dunno, a fancy car. You join the military, and suddenly, you don't owe me anything anymore. Yay for you (and sucks to be me. Good thing I can always enlist if I get into financial trouble)
I mean... Can't get any money from a dead guy anyway so sure why not.
Sure you can, if the military pays death benefits you seize them! But now what a soldier can do is take out hefty loans to pay off the debt of family and friends before enlisting and then leaving the lenders ultimately holding that bag. Might end up with a credit crisis even with 21% loan shark style interest rates
If you don't complain we may allow you to live a little longer.