Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315521 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
SWP Comment No. 53/2024
Publisher: 
Stiftung Wissenschaft und Politik (SWP), Berlin
Abstract: 
Russia plans to significantly step up its military spending once again in 2025. Both the production of weapons and the recruitment of soldiers are becoming increasingly expensive. Over the past two years, strong government demand has triggered a war boom in parts of the Russian economy. Incomes have risen and there is new optimism about the economy. However, owing to labour shortages and the impact of Western sanctions, economic growth has stalled this year, while inflation has remained stubbornly elevated. The Central Bank is using very high interest rates to fight price increases, which is creating more headwinds for the economy but has so far failed to slow inflation. Amid the deteriorating outlook for the Russian economy in 2025, the country is more vulnerable to economic crises. New sanctions or a drop in oil prices could trigger a recession.
Subjects: 
Russia
military spending
war against Ukraine
inflation
Central Bank
price increases
economic crises
sanctions
military-industrial complex
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Research Report

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