Russia’s war economy on track to recover from sanctions hit

The Bank of Russia recently upgraded its full-year growth forecast to 1.5% to 2.5% for 2023

Moscow's International Business Centre: The Russian economy has defied predictions of a prolonged slump with expansion for four successive quarters in response to the sanctions.

Russia’s economy may return to its pre-war level as soon as next year as it adapts to the impact of international sanctions, though the Kremlin’s drive to expand military recruitment may yet undo this goal.

The economy expanded by an estimated 4.6% in the second quarter and by 1.5% in the first half of the year, prime minister Mikhail Mishustin said at a meeting with officials. Deepening staff shortages are adding to Russia’s difficulties as the Kremlin seeks to draw more volunteers into joining president Vladimir Putin’s faltering invasion of Ukraine that’s now in its 18th month.