Russia cuts economic forecast as war bites further

Russia has slashed its economic growth forecast from 1.3% to 0.4% due to ongoing war impacts, with businesses struggling under high debt burdens and defaults threatening a quarter of the bond market. High borrowing costs have hampered manufacturing and investment while failing to control inflation driven by massive military spending and labor shortages. Energy revenues have plummeted 40% year-on-year despite higher oil prices, due partly to Ukrainian drone attacks on Russian refineries.