Russia’s economy grows by 4.1 percent in 2024 despite sanctions

Despite western sanctions

Russian economy grows by 4.1 percent

Despite western sanctions, the Russian economy recorded surprising growth of 4.1 percent last year. The armaments industry was the most important driver.

According to official information, the Russian economy grew by 4.1 percent in the previous year in the previous year. The Russian authorities also corrected the information on economic growth in 2023 to 4.1 percent on Friday. “That surpasses expectations,” said Prime Minister Mikhail Mischustin at a meeting with President Vladimir Putin at a meeting with President Vladimir.

“This is primarily due to the intensive growth of the processing industry,” said Mischustin. For almost three years now, the armor expenditure of the state has been the main engine of the Russian economy. According to Putin, the military expenditure in Putin’s budget amounted to 8.7 percent of economic output in 2024.

At the same time, however, the Russian economy suffers from a lack of workers because many young men are in the military or have left abroad. Inflation is still very high.

The increase in prices for butter and sunflower oil had made headlines in the Russian press in autumn. In 2023, a massive increase in egg prices had caused moods. The topic remains politically delicate in a country that still remembers crises and inflation in the 1990s.

Observers expect a significant decline in growth in 2025. Nevertheless, the Russian economy in the face of the western sanctions due to the attack on Ukraine was significantly better than many were assumed. The growth had built on the sale of gas and oil to the west for many years, and this source of income has now largely dried up. However, Moscow managed to open up other sources of income. Russian gas, for example, now flows primarily to China and India.