Feb 20 • 04:15 UTC 🇫🇮 Finland Ilta-Sanomat

Harsh Assessment of Russia's Economy by Expert – 'It Pulled the Carpet from Under Russia's Future'

An expert warns that Russia is descending into a 'death zone,' with its economic foundation eroding and future prospects becoming bleak.

Professor Kari Liuhto from the University of Turku describes Russia's current economic trajectory as one leading towards a 'death zone,' a term borrowed from mountaineering that signifies a point where the body deteriorates faster than it can recover. In a recent analysis published in The Economist, researcher Aleksandra Prokopenko likens the country’s economic collapse to a dilapidated apartment building, emphasizing that the economy is the foundation of any society and in Russia, this foundation is crumbling. Liuhto elaborates that while Russia struggles to hold itself together, it is simultaneously destroying its future prospects.

Liuhto highlights significant issues facing the Russian economy, including a halt in innovation, labor shortages, and postponed investments in education, all of which could adversely affect Russia's competitiveness in the long run. He warns that these challenges signal a troubling trend towards a raw material-based economy, which could stifle growth and diminish the nation's global standing. The economic growth rate for Russia was only one percent in 2025, highlighting the urgent need for structural changes to revive the economy.

Overall, Liuhto's assessment suggests gravely concerning implications for Russia's economic stability and competitiveness. The current path, marked by stagnation and a lack of innovation, may lead to dire consequences not just for the nation's future but also for its global relations and internal stability.

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