Russia Diverts Funds from Social Services to War Effort, But Economy Proves Resilient Despite Inflation and Lower Living Standards

Russia is spending nearly a third of its budget on war efforts, redirecting funds from other sectors like healthcare and education.

The Russian economy has proven more resilient than expected, with output potentially rising 2.5% this year.

Inflation is spiking due to a weakened ruble, making imports more expensive. Consumers notice rising prices for staples.

Russia has found new trading partners like China and India after being cut off from the West. But lower living standards loom.

Assessing Russia's economy is difficult with outdated models. Overall quality of life is hard to compare before and after the war started.