The war is pushing the Russian economy into an increasingly difficult situation, and even the official authorities now acknowledge this. The Central Bank of Russia has set a 2025 economic growth forecast of 1–2%, compared to 4% last year. However, propaganda presents this news as an "improvement of the forecast." Additionally, Russian officials openly state that the Russian economy entered a "period of slowing growth" starting in late 2024.
In 2023-2024, Russia's GDP growth was driven by massive investments in the defense sector and military orders. However, this only allowed the Russian government to maintain "positive" statistical indicators without making the economy more resilient. Now, Russia has no more funds to invest in industry.
The Russian authorities have officially started preparing Russians for further deterioration in living standards. The government only has money for one thing: war or supporting the economy. And the Kremlin chooses war, according to the Center for Countering Disinformation.
Also in Russia, there is a systemic bankruptcy of construction companies.
Bankruptcies of major developers are being recorded in Rostov-on-Don, Yekaterinburg, and other large cities. Many construction companies are on the brink of bankruptcy.
The cause of the crisis in construction is the effective cancellation of subsidized mortgages, problems with crediting due to the high key interest rate of the Central Bank of Russia, and the crisis in other sectors of the economy caused by sanctions and massive expenditures on the war against Ukraine.
Although Russian propaganda continues to tell citizens about the "economic growth and improved living standards," in reality, due to the war and sanctions, the vast majority of Russians are losing the ability to own their own homes.
