Russia's Economy Shows Resilience Despite Challenges

Despite inflation of over 7%, Russia's economy is proving resilient, with low unemployment, economic growth forecast at 2.6% this year, and stability for most people.

Higher prices for some imported goods are an inconvenience, but Russia has become more self-sufficient in food and other areas since 2014 sanctions.

Massive military spending and subsidized mortgages are stimulating the economy. The deficit remains manageable due to taxes and oil revenue.

Many foreign companies have left, but parallel imports allow Russians with money to still buy Western goods at a markup.

As long as oil export revenue keeps flowing, Russia can maintain high spending indefinitely, but a sharp drop in oil prices poses the biggest economic risk.