Russia's ambitious draft budget for 2025 to 2027 highlights a sharp rise in defense spending, projecting 25% more than the 2024 level. This accounts for more than 6% of Russia's GDP. The country has adapted its economy for war, focusing heavily on military production and circumventing sanctions since its invasion of Ukraine in 2022. Russia's inflation rate is over 9%, and the central bank recently raised its key interest rate to 19%. Analysts warn that Russia's unprecedented military spending could destabilize the economy, leading to higher living costs and public dissatisfaction as social spending declines.
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00:00It's Benzinga, and here's what's on the block.
00:03Russia's ambitious draft budget for 2025-2027 highlights a sharp rise in defense spending,
00:08projecting 25% more than the 2024 levels.
00:12This accounts for more than 6% of Russia's GDP.
00:15The country has adapted its economy for war, focusing heavily on military production and
00:19circumventing sanctions since its invasion of Ukraine in 2022.
00:24Russia's inflation rate is over 9%, and the central bank recently raised its key interest
00:28rate to 19%.
00:30Analysts warn that Russia's unprecedented military spending could destabilize the economy,
00:35leading to higher living costs and public dissatisfaction as social spending declines.
00:39For all things money, visit Benzinga.com.