War boom fading? Russia miner sounds alarm over possible recession | World News

Russia’s wartime economy, long propped up surging defence spending, may finally be hitting a wall. In a rare public admission, Economy Miner Maxim Reshetnikov warned Thursday that the country is “on the brink of going into a recession,” citing business pessimism and cooling indicators despite continued government efforts to project economic resilience.
“The numbers indicate cooling, but all our numbers are (like) a rearview mirror,” Reshetnikov said, according to Russian business outlet RBC. “Judging the way businesses currently feel and the indicators, we are already, it seems to me, on the brink of going into a recession.”
Reshetnikov was speaking at the St. Petersburg International Economic Forum, a high-profile event designed to showcase the country’s economic strength and attract global investment.
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Despite massive Western sanctions following the invasion of Ukraine in February 2022, Russia’s economy has outperformed some expectations, buoyed high defence spending that has driven growth and kept unemployment low. Wage increases meant to keep up with rising inflation have left some Russian workers in a better financial position, particularly in poorer regions where military enlment bonuses and death benefits have flowed.
Still, many economs warn that the economy’s militarised momentum may not be sustainable. Inflation remains a key challenge, and a severe decline in foreign investment continues to weigh on long-term prospects. Analysts say a lack of investment outside the defence sector is likely to lead to economic stagnation.
“Going forward, it all depends on our decisions,” Reshetnikov said, suggesting the country’s near-term economic fate rests on government policy.
Other top officials painted a less dire picture. Finance Miner Anton Siluanov acknowledged a cooling economy but added, “After any cooling, the summer always comes,” RBC reported.Story continues below this ad
Central Bank Governor Elvira Nabiullina echoed that sentiment, saying the Russian economy was simply “coming out of overheating.”
(With Inputs from Associated Press)