Putin can point to a resilient Russian economy as he orchestrates his reelection
Russia's economy remains stable despite sanctions, with a focus on domestic products and investments in military and infrastructure.
- Bilawal Riaz
- 1 min read
The economy in Russia remains stable despite sanctions and trade restrictions imposed by Western countries following Russia’s involvement in Ukraine. Prices of imported goods have gone up, and global brands have either disappeared or been replaced by Russian equivalents. Inflation is higher than desired, but the economy is expected to grow by 2.6% this year. Chinese cars have become more prevalent, and there is a shift towards domestic products. The government is heavily investing in military equipment and infrastructure projects. While there are challenges such as labor shortages and shifts in trade partners, the country’s reliance on oil and gas exports to Asia is ensuring financial stability for now. Putin’s re-election is expected, and the key risk to stability is a significant drop in oil prices.