#Russia #Faces a ’#Time #Bomb’ at the #Heart of Its #Economy, #Economist #Warns

Russia’s economic future is on shaky ground, warns Konstantin Sonin, a professor at the University of Chicago Harris School of Public Policy. Sonin explains that Russia’s measures to control its economy, prompted by the war in Ukraine, are leading to a breakdown of key market institutions and “borrowing from the future.“ The Kremlin’s reliance on export restrictions, blocking companies from leaving the country, and slashing public spending in favor of military funding is laying the foundation for long-term economic damage. Although the International Monetary Fund expects Russia’s GDP to grow by 3.2% this year, Sonin predicts that when the war ends, the economic costs will catch up to the country, leaving future generations to bear the brunt of current decisions. Russia’s focus on military production and national defense, while sacrificing investments in healthcare and education, is a time bomb that could hinder the country’s long-term economic development. #Russi