Story perspectives

Russia's Economy Struggles Amid Labor Shortages and Tax Hikes

2/27/2026

Summary

Story summary

Russia's economy faces labor shortages and rising costs from tax reforms, and Bank of Russia rate hikes strain growth, with growth projected at 0.5% to 1.5% this year.
Small businesses, such as Denis Maksimov's bakery, face closures and layoffs from higher taxes and rate hikes.
Nizhny Novgorod regional industries report declining investment and profits as firms struggle to meet obligations.
Experts warn continued pressure could hinder post-war recovery.

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Story summary

Russia's economy faces labor shortages and rising costs from tax reforms, and Bank of Russia rate hikes strain growth, with growth projected at 0.5% to 1.5% this year.
Small businesses, such as Denis Maksimov's bakery, face closures and layoffs from higher taxes and rate hikes.
Nizhny Novgorod regional industries report declining investment and profits as firms struggle to meet obligations.
Experts warn continued pressure could hinder post-war recovery.