Al-Qadi

Has Putin pushed Russia’s economy too far? | The Economist

Putin, Arkady, Adam, Zannie, Al-Qadi

Russia has incurred approximately 1.2 million total casualties in a conflict where President Putin's reliance on a paid mercenary force drawn from rural areas prioritizes fiscal containment over social cohesion. This strategy has accelerated the country's transition into a war economy, creating a fiscal drag that has pushed the budget deficit to 2.6% of GDP while forcing the state to extract capital from investment and civilian living standards. Although an immediate macroeconomic collapse remains unlikely, experts warn that current recruitment incentives and resource diversion are eroding long-term state power by consuming future potential faster than it can be replaced.