Russia's War Economy

Russia's War Economy This report provides an objective analysis of the Russian economy's adaptation to the ongoing war, examining key trends, the impact of international sanctions, and government policy responses. Forecasts and potential future scenarios are explored based solely on economic factors, without political views. Executive Summary Defying initial predictions of collapse following the invasion of Ukraine and subsequent international sanctions, the Russian economy has shown resilience. While avoiding a severe contraction and recording growth in subsequent years, the economic landscape is increasingly dictated by wartime demands. This has created a complex picture: unexpected stability in some areas coexists with significant vulnerabilities like rising inflation and labor shortages. Key drivers include substantial military spending, the persistent impact of sanctions, and multifaceted government economic policies. This analysis delves into these factors, their effect...