Russian Economy in Decline: What Everyday People Are Facing - Econ Lessons

Hi, my name is Mark, and I am an economist. Here, I provide a clear and concise overview of why many individuals in Russia are facing worsening economic conditions in 2025. It outlines ten interconnected factors: international sanctions, high inflation, reduced foreign and domestic investment, a shrinking labor force, and rising military expenditures. The video also discusses the declining value of the ruble and the impact of restricted access to global markets and technology.

Special attention is given to the personal financial consequences for Russian households. With prices rising and incomes stagnating, many citizens are experiencing severe budget constraints, forcing them to cut back on essential goods and services. Additionally, many households are experiencing negative cash flow, where monthly expenses exceed income. This dynamic contributes to increasing debt levels, reduced savings, and heightened financial stress for millions of families.

The video also examines the role of oil in the Russian economy. As of April 2025, Brent crude and WTI are trading between $64 and $68 per barrel. These relatively low oil prices limit Russia’s export earnings and strain government revenues, further tightening public finances and reducing the availability of social support programs.

My video combines economic data with easy-to-understand visuals and narration, making it ideal for viewers seeking to understand how geopolitical and macroeconomic forces affect ordinary Russians' daily lives.