As Welt writes, the Russian economy has proven that it can perform better than expected despite economic sanctions, but its current growth stems from the military industry. Economists predict Russia will have to maintain military production even if the war ends.
Otherwise, the country will face a deep crisis. In general, the growth of Russia’s GDP is determined by two factors: On the one hand, constantly growing consumption, and on the other – government orders. However, both are based on the war. Most leading experts believe that the Kremlin will try to preserve the war economy as long as possible after the war, spending years rebuilding Soviet weapons stockpiles that have been exhausted. Those who are the beneficiaries of the war and cannot count on the lifting of sanctions will oppose the transition to a peaceful path.
Earlier this year, Putin said Russia’s defense sector includes 6,000 companies with 3.5 million employees. In the first half of the year, the Russian Federation’s GDP grew by 4.7% against 3.6% last year.