UK intelligence evaluates impact of full-scale invasion on Russian economy
With Russia channeling increased funds into defense, there's a heightened risk of the Russian economy overheating
This was stated in a report from the UK Defense Ministry.
The UK Defense Ministry notes that Russia's central bank raised the interest rate by 1%, reaching a new base rate of 16%—the fifth increase since July 2023, when the base rate stood at 6.5%.
Intelligence reports reveal that inflation in Russia surged to 7.5% year-on-year in November, up from 6.7% in October 2023. The Russian statistical service estimates an overall inflation of 7.4% for the year, nearly double the Central Bank's target.
“As Russia ramps up its defense spending at the cost of other areas, the risk of the Russian economy overheating remains likely,” concludes the report.