Vasily Astrov, an economist at the Vienna Institute for International Economic Research (WIIW), said that Russian President Vladimir Putin “will not run out of money for the war.”
“For the Russian economy, the question is rather what comes next after the war, because now it is completely dependent on her,” says Astrov. DPA states that there is a serious increase of the state ones expensesespecially for the army.
Real wages in Russia are expected to grow by almost 8% in 2023. due to a shortage of qualified labor, a personal consumption – by 6.5%, points to the institute’s report. Gross domestic product grew by 3.6% last year despite massive Western sanctions.
The think tank predicts that the Ukrainian economy will grow by 3.2% this year, after having grown by 5.3% in 2023. Ukraine’s increasingly meager air defenses are weighing on growth as Russian airstrikes cut power to households and industry.
“At the end of the day, it’s all about getting the adequate and timely military and financial assistance from The West – in 2024 alone, Ukraine faces a financial hole of 40 billion dollars,” says Astrov.
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