cross-posted from: mander.xyz/post/49410725

Russian entrepreneurs are increasingly pessimistic about the future of the economy as 83.3% of companies expect conditions to worsen over the next year, The Moscow Times reported on March 20.

A recent survey by the Center for Strategic Research (CSR) revealed a sharp rise in negative sentiment, with three-quarters of respondents also predicting a decline in their own company’s performance. The crisis is being driven by a surge in non-payments, which affected 91.7% of businesses in February, and the crushing weight of high interest rates.

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The internal data suggests that Russian leader Vladimir Putin’s wartime economic model is creating a deep rift between the booming defense sector and the collapsing civilian economy. While military production remains propped up by state spending, 20 out of 24 manufacturing sub-sectors are currently in decline. Business activity fell into the “contraction zone” in March, as record-high credit costs and plummeting domestic demand left 75% of surveyed companies with zero profit.

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