The West Attacked Russia’s Economy. The Result Is Another Stalemate.

Economists expect sanctions to cause Russia to stagnate as its economy grows 1.5% this year. The West's failure to quickly bring Russia's economy to its knees mirrors a larger stalemate in Ukraine.

August 2, 2023 . 2:43 PM

1 min read

The International Monetary Fund expects Russia's economy to grow 1.5% this year, following a shrinkage of 2.1% the year before.
Sanctions have constrained but not stopped Russia's ability to finance the war in Ukraine.
Russia has managed to avoid collapse and achieve some growth through government stimulus, a shift to a war economy, and trade rerouting to Asian partners.
Government spending as part of GDP has jumped by 13.5% in Q1 2023, with much of the growth attributed to weapons and military production.
Russia's global demand for commodities and the pivot to Asia as a trading partner have also supported the economy.