The tremendous growth of the Russian economy from 2023 to 2024 is not sustainable. Russian GDP grew more than the US, Japan, UK, Germany, France. This in fact created the risk of overheating of the Russian economy, prices rose, and inflation became a problem. Russia is not a war economy, a mere 10% of the growth is related to military production. 30% of Russia's growth is due to oil and gas exports. However, the production for the military is becoming a pillar, the real pain will be when Russia wins the war and this pillar of the economy falls away. Russia is not overspending, on the contrary, it saved substantially prior to the war, and its spending was very targeted with the aim of fuelling the economy. This has succeeded beyond anyone's wildest dreams, even the Financial Times admits this: https://www.ft.com/content/d304a182-997d-4dae-98a1-aa7c691526db?syn-25a6b1a6=1 There is a change in the structure of spending now, including growing social and military expenditure, among the main challenges facing the economy. However, the Russian economy is still growing. The economy is expected to maintain “positive momentum” this year. The country’s economic growth is expected to steadily increase to 2.4 per cent in 2029. Economic dynamics are cyclical, a period of high growth is always followed by an adjustment, the current stage is normal. The spectacular growth of 2023 and 2024 could not continue indefinitely. https://www.ft.com/content/30d82390-b30f-41c7-a3dc-f4768126d99e?syn-25a6b1a6=1
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