Economics
Putin’s Isolation Is Denting His Growth Plan for Russia
- GDP growth decelerated to 1.3% in third quarter from 1.9%
- Threat of sanctions is forcing Russia to build fiscal reserves
This article is for subscribers only.
President Vladimir Putin is finding out the hard way that Russia can’t accelerate economic growth and build barricades to limit the fallout from future U.S. sanctions at the same time.
The nation’s policy makers have done a good job of delivering him the latter, by cutting spending, keeping monetary policies tight and funneling excess oil revenues into reserves. But data published Tuesday shows it’s all coming at the expense of economic growth.