Russia's Economy Slows, Threatening Spending Capacity | JQJO

Russia's economic growth is slowing significantly, potentially hindering its ability to fund rising defense, security, and social expenditures. Top industrialist Alexander Shokhin warned the current 'managed soft landing' is proving less soft and controlled than anticipated. Projections for GDP growth have been revised downwards, with figures barely exceeding 1% for 2025 and 2026. This slowdown, a consequence of heavy defense spending and cooling demand after central bank rate hikes, raises concerns about the sustainability of Russia's economic model and its capacity for long-term military financing.