Russia's economy faces inflation and labor shortages as key vulnerabilities

Russia's economy faces significant challenges following its invasion of Ukraine in 2022. Recent weeks have seen a sharp decline in the ruble's value, exacerbated by Western sanctions, high inflation, and labor shortages. Experts highlight inflation and labor shortages as key vulnerabilities. Inflation is rising, impacting low-income families and public sector investments. Meanwhile, a shortage of workers, driven by emigration and military recruitment, limits economic growth. Experts warn that these issues could lead to stagnation rather than collapse. Additionally, Russia's reliance on oil exports makes it vulnerable to global price fluctuations and potential sanctions. The country's financial reserves are under pressure, and the economic outlook remains uncertain as sanctions continue to affect its war efforts.