Another step towards collapse. Russia's economic growth has almost completely stopped
Russia's economic growth on the verge of stagnation
As of July 2025, the country's GDP grew by only 0.4% year-on-year. This means that the economy is on the verge of stagnation.
For comparison, in June of this year the figure was 1%, and in December 2024 it was 4.5%. Thus, in just half a year, the growth rate decreased 11 times.
The state of industry is showing a critical slowdown. Sectors that showed positive dynamics last year are now plunging into recession.
Furniture production decreased by 12%
Clothing production — by 7%
Electrical equipment — by 6.5%
In metallurgy, the decline exceeded 10%
These indicators indicate that Russian industry is actually balancing at zero.
Even the military-industrial complex, which the Kremlin considers critically important during wartime, cannot keep up.
Growth in the production of metal products and electronics slowed by 3.5-5 times. This demonstrates that even the defense industry, which for a long time remained the locomotive of the Russian economy, has begun to lose momentum.
The reserves for "fueling" the Russian economy are running out. To continue financing the war, the authorities will be forced to raise taxes and take resources from the civilian sectors, which will further slow down development. The war and sanctions are pushing the Russian economy into a protracted crisis.
"Putin's economy" is rolling into the abyss:
Oil revenues fell, and the budget deficit reached 4.9 trillion rubles in July, the highest in more than 30 years.
Inflation exceeded 10%, the key rate rose to 21% — the highest level in two decades.
Banks have been betting on war. As a result, many banks are earning less than they pay on deposits and loans.
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