Current State of the Russian Economy

The Russian economy is showing signs of short-term stabilization as of July 2023, with recent indicators suggesting improvement in budget revenues, particularly in non-oil and gas sectors. Economic growth has been reported, albeit solely driven by military production, leading to concerns about the sustainability of such growth in the long term. Significant challenges persist, including loss of labor due to military drafts and mass emigration. Consequently, while short-term recovery may be evident, the medium-term outlook remains bleak due to factors such as reduced productivity and lack of investment in productive industries.