|
High prices for oil, Russia's main export, boosted Putin's
standing as the country emerged from the chaotic 1990s, raising
incomes and purchasing power for millions of its citizens.
But the 2008 financial crisis, followed by repeated bouts of
Western sanctions following Moscow's annexation of Crimea in
2014 all the way through to restrictions in the wake of its
full-scale invasion of Ukraine, have changed the calculus for
the Kremlin.
Russian authorities have battled rouble depreciation and often
high inflation in recent years as the economy has moved from
consistent growth to an era of stagnation.
Here are some charts telling the economic story behind Putin's
time in power.
Buttressed by high commodity prices in the early years of
Putin's presidency, the rouble traded largely steady, but
following the imposition of sanctions over Russia's annexation
of Crimea, which Ukraine demands it hand back, the currency has
depreciated and become more volatile.
It reached a record low in the weeks after Moscow's February
2022 invasion of Ukraine, following which the authorities
introduced currency controls to stem capital outflows.
Russians have become used to rouble fluctuations and the general
weakening trend in the last decade in particular.
Real incomes also grew steadily in the first few years but wage
growth has become more stagnant since the sanctions era began.
Inflation and interest rates have often been elevated, with
Russia's central bank using monetary policy to try and keep a
lid on price rises.
In the last decade, Russia's budget spending priorities have
also shifted, with a rising focus on defence spending that will
culminate in almost a third of all budget expenditure going to
the military in 2024.
Spending on other areas, such as healthcare and education, has
barely increased in real terms in over a decade.
(Graphics by Riddhima Talwani and Vineet Sachdev; Reporting by
Alexander Marrow and Darya Korsunskaya; Editing by Emelia
Sithole-Matarise)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
