Comment on War with Ukraine is the only thing preventing Russia from entering an immediate recession, economists say

War with Ukraine is the only thing preventing Russia from entering an immediate recession, economists say

Getty/ALEXANDER KAZAKOVRussia would be in a recession by now if it weren't for the nation's hefty war budget, economists told BI.War spending is propping up the economy, which is becoming increasingly overheated, they added.But Moscow has big problems on its hands, including soaring inflation and mounting currency issues.War may be the only thing keeping Russia's economy afloat.According to Jay Zagorsky, an economist and markets professor at Boston University's Questrom School of Business, the Ukraine invasion is likely the only thing preventing the country from slipping into a recession.That's because Russia's hefty military budget is supporting its sagging economy.

 

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