UK Intelligence: Russia's Economy Strained by War Spending and Labor Shortages
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UK intelligence predicts Russian economy may "overheat" due to increased spending on war with Ukraine and pressures from declining labor market.
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Inflation in Russia expected to stay above 4% target in 2024, reducing real government spending on areas like social protection.
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Russian economy seen as reorienting to fuel war above all else.
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High interest rates from Russian central bank likely until 2024, increasing costs for consumers and government.
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UK intelligence recently highlighted problems with conditions for Russian soldiers and heavy armored vehicle losses around Avdiivka.