[Tangsen]

Russian economy overheated becomes increasingly reliant on continuing war, study proves. Russia's economy has been noticeably overheating and is increasingly dependent on continuing the war, the expenses of which act like a narcotic on it.

"Operating at the limits of its capacity, the economy is now showing increasing signs of overheating," the forecast indicated.


According to WIIW, Russian economy grew by 3.5% last year. However, high inflation & key bank rates raised to 16%, analysts estimate this year's growth will reach only 1.5%. "Russia is increasingly dependent on the war continuing enormous spending on it is like a drug for the economy," Vasily Astrov, Russia country expert at WIIW, pointed out.

Astrov indicated about 29% of the country's federal budget will be allocated for armaments in 2024. Generally, spending on Russian military industry has increased to 6% on country's GDP,  the highest level since collapse of the Soviet Union.

In addition, the Austrian Institute has lowered its economic growth forecast for Ukraine. This year, the figure may reach 3%, which is 1.2% points lower than WIIW experts had previously expected.

This pointed to a possible victory of Donald Trump in US presidential election, makes future of Western financial assistance to Ukraine, which is defending itself from Russian invasion, even less certain.

Background: In 2023, the European Union, affected by war, inflation and weakening export markets, managed to avoid recession despite the weakness of its two largest economies, Germany and France, and given that the EU had not experienced any significant growth since mid-2022.

This conflict the biggest dumb ass are

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