Speaking at the international Economic Forum conference being held in St. Petersburg as part of attracting investment to russia, he said that based on current trade and indices, it appears that they are on the verge of recession. However, he said that whether we will fall into recession or not will depend on the decisions taken by the government. The war on ukraine, which began in 2022, has been going on for a long time. In this context, the imposition of sanctions by some countries has caused the Kremlin's economic difficulties. On the other hand, heavy spending on the military has affected economic growth. In this context, Russia's economic growth fell to 1.4% in the first quarter of 2025.It was 4.5% in 2024 and 4.3% in 2021. However, this sharp fall (1.4%) is said to have been caused by Western sanctions imposed over the ukraine war. It is said that this, along with high spending, has led to an economic crisis in Russia. It is estimated that by 2025, Russia's defense spending will exceed 8% of its GDP. Due to the war with ukraine, russia has been increasing its defense spending drastically since 2023. In this order, the Russian parliament approved a defense budget of Rs. 10 lakh 67 thousand crores in 2025. Since most of the budget is being spent on the defense sector, it is said that money will be tight for education, health, and infrastructure.
It is said that the prices of essential commodities have increased drastically in this context. As part of this, the prices of onions, potatoes, other vegetables, and chicken eggs have increased drastically in the country. It has become a concern that many citizens are leaving the country in the wake of these latest developments!
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