Russia's economic landscape at the end of 1998 is a desolate one. In the wake of August's financial collapse, the government's coffers are virtually empty. There is no money to service loans taken out to meet basic state obligations. Nor is there enough money to pay back wages and pension payments to Russia's impoverished population.
Inflation continues to grow.
Cautiously optimistic economic forecasts for next year, issued by the new government of Prime Minister Yevgeny Primakov, have been criticized as politically motivated. Critics say the forecasts are aimed at attracting much needed Western financial aid and placating frustrated domestic constituencies. Primakov says his Government wants to rebuild both foreign and domestic trust in Russia's economy and financial system, shattered after the August meltdown. But economic analysts say the draft 1999 budget recently produced by the government is unrealistic. They say it assumes that Russia will obtain new loans from the International Monetary Fund and other international institutions, even though IMF officials have repeatedly indicated that no additional money will be provided until Russia puts together a credible economic recovery plan.