🇷🇺 Russia’s Economy: Entering a “Death Zone” or Preparing a Strategic Rebirth?
After two years of absorbing sanctions through heavy military spending, Russia’s economic momentum is now reaching a critical turning point. What once looked like resilience is starting to raise deeper structural questions.
Is this the start of long-term economic strain… or a forced transformation into a self-reliant global power?
Let’s break down the battlefield.
📉 The Bear Case: A Cannibalizing Wartime Economy
Russia’s GDP stability looks solid on paper — but the underlying engine is burning long-term fuel to maintain short-term survival.
• Debt & Inflation Pressure
The Central Bank of Russia has maintained extremely high interest rates near 15.5% to fight inflation. While this helps stabilize prices, it has crushed private credit growth, leaving civilian industries struggling to expand or even survive.
• Severe Labor Shortages
Military mobilization and outward migration have created a workforce vacuum. Many industrial sectors are operating under emergency labor policies, extended overtime, and reduced productivity efficiency.
• Budget Allocation Imbalance
Military spending is now consuming nearly 40% of national expenditures. This supports defense output but diverts funding from education, healthcare, and infrastructure — sectors that traditionally drive sustainable long-term growth.