Turkey's May inflation exceeds forecasts; Russia's economy falters amid war

Turkey's economy registered a monthly inflation rate of 1.71% in May, a figure that exceeded prior economic projections. This indicates persistent inflationary pressures within the Turkish economy.

Meanwhile, Russia's economic situation is deteriorating under the strain of the conflict in Ukraine. President Vladimir Putin is set to address the "Russian Davos," the St. Petersburg International Economic Forum, amidst a backdrop of economic stagnation. The war has led to increased prices, tax hikes, record-high borrowing costs, business closures, and labor shortages, creating the most challenging economic environment since the war began in 2022.

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The Russian economy is entering a stagnation, with high interest rates and high inflationary pressure. I don't see the Russian economy entering the 1990s or something similar, it's just a slow degradation of everything.

Adding to Russia's economic woes, Ukrainian attacks on critical energy infrastructure, including oil depots and refineries, pose a significant threat to Moscow's most crucial revenue stream. In a symbolic strike, an oil facility in St. Petersburg was hit by a drone on Wednesday, the same day dignitaries arrived for the economic forum, with plumes of smoke visible in the background.

Alexander Kolyandr, a Russian economy expert based in London, described the Russian economy as entering a period of stagnation characterized by high interest rates and inflationary pressure. He noted a "slow degradation of everything" rather than a collapse into the conditions of the 1990s. Official statistics reveal that Russia's GDP contracted by 0.2% in the first quarter of the year, marking the first quarterly decline in three years. Furthermore, the government recorded an $80 billion budget deficit in the first four months of 2026, exceeding the annual target.

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Rumors of my death have been greatly exaggerated.