Russia’s economy showed minimal growth in Q3, with military spending playing a central role in this stagnation. Initially, the massive investment in defense seemed to provide some economic stimulus, but it has since led to inflationary pressures that are now stifling overall growth.
The war-related financial commitments are increasingly diverting resources from other sectors, creating a strain on the economy’s ability to expand. Inflation has emerged as a critical challenge, further constraining growth prospects.