Russian Defense Sector Shows First Signs of Slowdown After Ukraine Invasion
Recent reports indicate a slowdown in Russia’s defense sector after three years of robust growth fueled by the war in Ukraine. Data from the Russian national statistics agency, Rosstat, reveals stagnation or declines in military-linked companies in September, a shift from the double-digit growth seen in previous years. Key manufacturing areas like fabricated metal products and transport equipment experienced a significant decline or slowed growth, dragging down the broader manufacturing index. Consequently, the Central Bank has cut interest rates to combat economic stagnation, simultaneously revising its inflation outlook upward and lowering its economic growth forecast for next year.
John Q. Hosedrinker