Ailing Soviet Economy Now Seen as Worse
The Soviet economy, hit by strikes, ethnic conflicts and high wage hikes, has worsened since July, according to official statistics published Saturday.
The figures, released by the Tass news agency, appear to confirm public frustration with the persistent failure of President Mikhail S. Gorbachev’s perestroika program of economic restructuring to improve the standard of living.
“Existing policies for the revitalization of the financial situation have not yet had tangible results,” Tass said.
The State Statistics Committee, Goskomstat, which prepared the figures, said production had slumped since July and the rise in imports outstripped that of exports tenfold since January. Although food imports had grown by 23%, the food supply to many areas had actually worsened, it said.
The figures for January to September show imports of goods and services rose 5.1% to 50.4 billion rubles ($80.7 billion) while exports edged up just 0.5% to 49.3 billion rubles ($78.9 billion).
If the trend continues for the rest of the year, it will be the first time since 1976 that the Soviet Union has recorded a negative trade balance.
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