Russia’s military spending shows the signs of bubble explosion

Reshetnikov’s Declaration confirmed to several economists earlier this year: Russia’s high-spending war economy, for the forecasts of the inevitable decline, finally falls on the harsh threshold of labor, productivity and inflation.

The occupation of Russia’s occupation of Ukraine led to the sanctions of sanctions and Western companies approaching the nation by Western peoples. However, despite the forecasts of approximation, the country’s economy, economists, increased with financial costs associated with the mass defense, had a good way to watch Military Keynthile. Last number of $ 167 billion worth a record number of $ 167 billion, pouring a record number of resources, kremlin’s industrial production, a consecutive year-old GDP increase and wages among the combined sectors.

The Kremlin has allowed Russia’s defense budget to grow faster than the country’s GDP, but there are budget expenses It has increased a lot Since the beginning of Russia’s occupation of Ukraine. According to the World Bank, in 2021, the country spent 3.6% of GDP on national defense. Now 6.3% of GDP goes to defense costs and doubles the share in the United States.

Russia’s military spending Baloncuk created the things that Elina Ribakova, who at the Peteron International Institute of Economics, as a game of music chairs.

“Everyone earns money. Suddenly, people can enjoy higher income and be a mortgage or durable. This is practical, morbid popular.

However, Nicholas Fenton, Associate Professor in the Center for Strategic and International Studies, “You can spend a lot of structural structure in the economy. During this period, there was a chronic labor of a large suspension country for the Russian economy.”

Before Russia’s occupation to Ukraine, the country was 4.75% unemployment in 2021, by hitting the levels Note 2.4% down At the beginning of 2025, according to state information. However, as unemployment was rejected, the country also witnessed a large number of masses one million inhabitantsAnd hundreds of thousands of important military deaths. These figures increased the lack of employment in Russia in Russia due to the elderly population. In 2022, the number of employees aged 16-35 decreased by 1.33 million and the share of the workforce was the lowest in the record since 1996.

This advance deficiency in the labor market complicated Because citizens are drafted to work with defense with emigrated, emigrated or profitable bonuses. Despite the increase in real wages, productivity, inflation in the threat of fuel and military place and investments in non-defense sectors.

This spring, the Russian-made sector, the industry, which includes defense enterprises, has been close to three years and lowered 2 points to February. Similarly, the growth of Russia’s industrial production has declined two years, two years, a total of 0.2% compared to the year.

All this continued to grow, It is growing 9.52% Compared to 7.42% in 2023 last year. Interest rates up to 20% in June. Meanwhile, the Central Bank’s growth forecast is between 1 and 2% for 2025.

However, interest rates may change: high-ranking officials and Russian businessmen have repeatedly called on the cuts to encourage growth, and President Vladimir Putin called on politicians to create a balance between inflation and increasing growth.

As a result, the country’s large colleague in the center of the country, country, European policy in the center of the country’s growth potential, the country had to eliminate labor productivity, difficult sanctions and significant inflation.

On the basis of the head of the head, the nation is behind the GDP’s peers, closely Mexico or more than Turkey’s Western Europe. Unlike Germany or Japan, Russia’s growth depends on the export of more goods for the demand for the demand for oil and state.

Oil and gas revenues about 20% He stressed the prudent nature of the country’s GDP, financial health. In the first half of 2025, oil exports and dipping in global prices forced the Kremlin to reconsider the budget deficit. However, the growing conflict between Israel and Iran has already pushed the prices of oil offering the temporary budget relief of the Russian potential.

“The war in the Middle East is very good for Putin, but it does not save the economy. This means that this management policy can continue to continue this policy,” said Kolyandr says ” Fortune.

Ribakova agrees with the kolyandr. “We rubbed our hand because it is the most effective sanction on Russia, we have rubbed our hand.

There is no solution to Russia’s oil exports, lack of foreign investment in the country and the absence of American companies. President Donald Trump sees the return of the Kremlin with his diplomacy and the return of US enterprises as the main deal of US enterprises to Russia.

“Trump says Vladimir Putin says:” If you are preparing to make this war and get an end, I mean the return of American companies to Russia. “” Says.