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economy is now overheated, but the risks of such overheating exist, and we need to pay attention to it," she said.
However, the current capacity to expand production in the Russian economy is increasingly limited by labour market conditions. Unemployment has dropped to a new historical low. Labour shortages are increasing in many industries amid the effects of the partial mobilisation as growth in businesses’ demand for labour continues. In these circumstances, productivity growth can lag behind real wage growth said the CBR.
Sanctions on Russia are not working well. In the beginning of this year, the Ministry of Defence of Ukraine published figures estimating that Russia was down to 19% of its pre-invasion long-range strategic missile capabilities. These estimates, however, were recently re-evaluated by the Ukrainian authorities following Russia’s continuous attacks on Ukrainian cities in May and June. The Kyiv Independent reports that now, Kyiv foresees Russia doubling its production of long-range high-precision missiles in 2023, with a projected total of 1,061 missiles—enough to fire almost 90 per month for the next year.
8 RUSSIA Country Report July 2023 www.intellinews.com