The Current State of the Russian Economy

Russia's economy is facing significant challenges, with interest rates soaring to an unprecedented 21% due to high inflation and war-related spending. Despite the tough sanctions imposed following the invasion of Ukraine, the economy still managed to grow by 3.6% last year and is expected to maintain similar growth this year. However, this performance is not necessarily a sign of strength; rather, it highlights a precarious situation where the government is forced to increase defense spending at an unsustainable rate. Analysts warn that this combination of high interest rates and growing military expenditures may soon lead to economic decline.