Christine Drews Sieger
Russia’s economy is facing mounting pressure as public pessimism reaches its highest level in at least two decades.
Russians have become markedly more pessimistic about the economy. A new Gallup survey shows that a majority believe both local economic conditions and living standards have deteriorated.
The survey was conducted among 1,000 Russians between March and May. Gallup describes the findings as the most pessimistic it has recorded in Russia in at least two decades.
A majority of respondents say economic conditions in their local area have worsened, while only a small share believe the situation has improved.
The survey was conducted before the latest fuel supply problems, which have since affected several parts of the country, according to Reuters.
Declining Trust
Economic concerns are also reflected in public confidence in the country’s institutions. According to Gallup, trust in both the government and the military has declined since Russia’s invasion of Ukraine in 2022.
Gallup reports a significant decline in public confidence in both the armed forces and the political authorities compared with 2022.
Meanwhile, 56 percent of respondents say their standard of living has worsened, while 29 percent say it has improved.
The results point to broader dissatisfaction with developments in the country, although Gallup did not examine the specific reasons behind the responses, Reuters reported.
Ukraine Also Surveyed
Gallup also released a similar survey from Ukraine. According to Reuters, only seven percent of respondents approve of the job performance of the leadership of the United States, while 79 percent disapprove.
According to Gallup, the decline in approval of the United States is the largest the organization has recorded in its international surveys over the past two decades.
Two-thirds of respondents favor a negotiated end to the war, while about one-quarter want the fighting to continue until Ukraine achieves a military victory.
Participants were not asked what terms they would be willing to accept in a potential peace agreement.
Why Is the Economy Under Pressure?
Russia’s economy continues to face pressure from elevated inflation and relatively high interest rates, despite recent rate cuts by the central bank.
High government spending on the war in Ukraine has fuelled inflation in recent years, while tighter monetary policy has weighed on borrowing and broader economic activity.
Although inflation has eased, policymakers have warned that price pressures remain above target, according to AP News.
A Contrast With Russia’s Official Growth Figures
Gallup’s findings stand in contrast with Russia’s official economic data, which have shown economic growth in recent years.
According to Gallup, much of that growth has been driven by rising military spending, which has supported production and employment, even as the civilian economy has shown signs of weakening.
The organization says Russia has become increasingly dependent on elevated defense spending to sustain economic activity, making it more difficult to scale back its wartime economy without risking an economic slowdown.
Sources: Reuters, Gallup, AP News
