DISINFO: Putin has shown Russia’s economic supremacy to the world
SUMMARY
Russian President Vladimir Putin showcased the economic strength of his country at the VTB Investment Forum, sending a message to the world about Russia’s economic supremacy.
RESPONSE
This is part of what some experts have labelled Russia’s economic war propaganda, aimed at convincing the world of the futility of the sanctions imposed on Russia for its aggression against Ukraine and the need to remove them.
Despite the claims of this disinformation story, there is mounting evidence of Russia’s economic troubles. The International Monetary Fund forecasts a growth of 3,6% of Russia’s GDP in 2024, but many other indicators show that Russian economy is suffering from multiple problems, such as overheating and likely upcoming stagflation. The ruble plummeted in the last quarter of 2024, reaching a record low. Record unemployment rates of around 2% are actually a sign of enormous labour shortages. Russia’s Central Bank was forced to raise its main interest rate to 21%, the highest in decades. Both elements combined are taking a serious toll on Russian businesses. Russia’s military budget has tripled since 2021, being now more than double than expenditure on social services, and which along with security agencies will account now for 40% of the total state budget. Military production is struggling to replace what is being massively destroyed on the battlefield. Food prices are skyrocketing, and while consumer inflation is officially at 8,5%, many analysts think the real figure is much higher. According to some data, inflation since the invasion of Ukraine in February 2022 reached 70% in 2024.
See other examples of similar disinformation narratives, such as claims that instead of crushing Russia, sanctions led to US debt and Europe’s freezing, that Russia became the World's 4th economic power thanks to the war in Ukraine, that Russia’s economy is massively outperforming that of the collective West, or that the Russian economy thrives despite EU sanctions.