Wartime Erosion: The Quiet Crisis Brewing in Russia's Economy Russia's economy is facing a more insidious threat than the war in Ukraine: long term erosion from debt and military spending.
Despite President Putin's high approval ratings, economists warn that the country's structural foundations are crumbling. Growth has slowed to 0. 6% this year, down from over 4% annual expansion in 2023 24.
The government's reliance on oil export revenues – bolstered by high prices from the Iran conflict – is a temporary reprieve at best. As Chris Weafer, CEO of Macro Advisory Ltd.