Putin's plans endanger Russia's economy: military risks grow!

Putin's plans endanger Russia's economy: military risks grow!

President Vladimir Putin's economic priorities indicate a continued focus on the Ukraine conflict. In the coming year 2025, the Kremlin plans to significantly increase military expenses, which at the same time fueled troubles about the stability of the Russian economy. According to official reports, the expenditure for defense and national security will make up about 40 percent of total government spending, which corresponds to a record adjustment.

In the past few months, the Russian economy has already been faced with acute problems. Despite the official rhetoric that everything is stable, the pressure on the government's funds has been significantly increased. Experts warn that Putin's project could not be viable in the long run.

rising military expenditure and their consequences

The planned defense spending for 2025 amounts to almost 13.5 trillion rubles, which is a remarkable increase of about three trillion rubles compared to the previous year. However, Russian economists, such as Andrei Yakovlev, emphasize that such massive investments will make drastic cuts necessary in other places. "The increase in military spending requires cuts in other areas," says Yakovlev.

These financial resources are expected to affect social spending. Anders Åslund, a Swedish economist, points out that the government could be forced to reduce public expenses in order to compensate for an increasing budget deficit. This could have a negative impact on social services and impair the everyday life of the citizens.

inflation: The greatest concern for the Russian economy

Another central problem is inflation, which will probably continue to increase due to the increased military spending. Analysts from Renaissance Capital fear that inflation could increase by 0.5 percentage points next year. The Russian central bank was already forced to raise its key interest rate in the summer to counteract the increasing inflation rate.

statistics show that inflation in May 2024 has reached the highest value in over a year with 8.3 percent. Experts warn that this development will continue to burden the economy, especially at a moment when the people have to deal with rising prices for essential goods.

In summary, it can be stated that Putin's plan to increase military expenditure could lead to a further financial burden on the Russian economy that already suffers from the pressure of international sanctions.

The dependence on military expenditure also means that a return to normality in the Ukraine conflict would heavily burden the Russian economy. The waiver of the high government spending would inevitably lead to a recession that could continue to destabilize fragile economy. The Kremlin could be forced to capture the military investments in order to promote economic growth, even if this does not seem viable in the long term.

economists warn that such dependence on military spending and the Ukraine War could inevitably endanger the economic future of Russia. While Putin tries to keep control, the situation could prove to be a "time bomb" for the country's long -term economic perspectives. Further information on this topic can be found in a detailed report on www.fr.de .