Russia's economy will struggle to cope with peace - Media.


The Russian economy is under threat due to focus on war
President Vladimir Putin has bragged about the stability of the Russian economy, but according to the International Monetary Fund, this resilience is illusory. The report states that GDP growth is occurring due to large expenditures on military activities. In particular, military spending accounts for 8% of GDP and 40% of the federal budget. If Putin reduces military spending, it could lead to economic problems.
One such problem is lending. Large banks provide subsidized loans, which adversely affects the economy. Moreover, Russia is facing a demographic issue, as a shortage of labor is leading to decreased unemployment and loss of capacity in the civilian industry.
Even if military operations cease and soldiers return home, Russia will still face demographic problems. Putin has no intention of reducing the armed forces and, on the contrary, has ordered their expansion. This could lead to further deterioration of the economic situation.
Sanctions from the U.S. may be lifted on the Russian energy sector, but the European Union and the United Kingdom have no intention of following suit. This means that Russia has lost its largest market for oil and gas and cannot expect positive shifts in the future.
The Russian economy is already slowing down, and the IMF predicts only modest growth in the coming years. A shift away from military orientation will be painful for the country's economy.
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