Russia's Economy Shows Resilience Despite Sanctions, But Long-Term Challenges Loom

Russia's economy grew more than expected last year due to increased military spending and higher energy prices. However, growth is expected to slow this year.

The West's attempts to damage Russia's economy through export bans, financial restrictions, and cutting off industrial inputs have largely failed so far.

Russia has found alternative markets and ways to facilitate trade and transactions, limiting the impact of Western sanctions.

Over the longer-term, Russia faces demographic challenges and a brain drain that will undermine economic growth.

Russia's budget deficit is widening due to increased military spending, leaving the economy vulnerable if energy prices fall.