Gross domestic product (GDP) only grew by 1.4% in the first quarter of 2025 – a notable decline from 4.5% growth in the previous quarter and 5.4% in the same period last year, the Moscow Times reported, citing Rosstat data.
The latest data from Rosstat came in below expectations: the Russian Economic Development Ministry estimated GDP growth at 1.7% and Bloomberg analysts predicted 1.8% growth.
Because the economy of a country with 140 million people is a massive system.
This is that state economy crashing, and the reason it’s taking time is that Russia had prepared for this, and had a giant war chest to sustain sanctions and the extra cost of war. Plus Russia has been very skillful in pulling all sorts of economic tricks to postpone the crash.
You could say the Russian economy already is collapsing, it just seems a bit like Wile E. Coyote running off a cliff and hanging midair for a moment.
But Russia has exhausted all their reserves on many levels, industries are closing, tax revenues are dropping like a rock, Banks, and the oil/gas industry is running at deficits, even the military complex is running at deficits because they are required to sell below cost to the government. Everything is worn down because Russia lacks the resources to maintain productivity, and repairs and maintenance of equipment and infrastructure is insufficient because of lack of resources.
It’s all crumbling slowly, except when one key part finally collapses for real, everything else goes with it very quickly.
Putin knows he is going down, and he has decided to take Russia down with him.
He does not know he’s going down, they always think they’re God’s Chosen till they hear the knock at the bunker.