Recovery Bubble: Budget and credit activities are pushing the economy beyond its potential
The growth of the Russian economy in the first half of 2023 has been attributed to an infusion of budgetary and credit measures the scale of which does not correspond to its inherent potential and objective capabilities, according to experts from the Central Bank. This development has triggered an acceleration in consumer prices, overheating of the economy, and, in part, the devaluation of the ruble, leading the Central Bank to respond by raising the key interest rate to a prohibitive level.