Russia built an economy like a fortress but the pain is real
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By The Associated Press
Sanctions are hitting Russia’s economy hard. The ruble is plunging, and major foreign companies are fleeing. There’s little question Russia will see a hit to economic growth, while ordinary people are going to see higher prices on top of already high inflation. Yet the longer-term prospects are uncertain, and forecasts vary because no one knows the outcome or fallout from its war in Ukraine. Failure to diversify away from a dominant oil and gas industry and crony capitalism have meant Russia is already an economic underperformer. But some economists think Russia will muddle through because it’s built a fortress-like economy based on oil and gas money, low debt and strong financial reserves.Â