Amundi expects Russia’s gross domestic product (GDP) to grow by 1.5% in 2024 and by 2% in 2025, compared with 0.5% and 1.2% for the euro zone.

GDP is a function of several things including government spending. Russia is throwing their war chest at war material production. That will absolutely cause GDP to increase sharply. However, like many things Russia is doing right now, it is a short term strategy.

Russia is also depleting their Soviet inheritance rapidly in Ukraine. There is visual confirmation of over 13,000 Russian vehicles lost in Ukraine, including over 2,500 Russian tanks lost.