Business Maverick: Russia Defies Most Dire Economic Forecasts Despite Looming Recession

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Russia’s economic crisis has lost some of its sting, buying more time for President Vladimir Putin at home as his military presses a new offensive in its war against Ukraine.

Even with a recession looming and inflation approaching 20%, the economy has for the moment defied the most dire forecasts. JPMorgan Chase & Co.’s economists have seen enough upbeat signs to halve their forecast for a first-quarter contraction in gross domestic product to 5%.

Fears of scarcity initially prompted the 36-year-old to stock up for a month by buying grains, tinned meat and pasta. Prices for some cleaning products tripled, so she switched to a cheaper alternative. As the weeks tick by, evidence points toward the resilience of households. Independent pollster Levada Center said itsThe government’s intensified censorship and propaganda during the war are doing their part. Still, short-term inflation data and changing shopping preferences show how the sentiment is turning around.

 

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