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flag Russia's economy grew 1% in 2025 amid war and sanctions, with high spending, rising deficits, and struggling industries.

flag Russia's economy grew 1% in 2025 despite sanctions and war pressures, with unemployment at 2.2% and inflation at 5.6%, according to Prime Minister Mishustin. flag The government reported rising small businesses and industrial output, but faces a budget deficit nearing $73 billion due to war spending consuming over 40% of the budget. flag Oil revenue has halved, prompting tax hikes and reforms that burden small firms, while sectors like autos and metals struggle. flag Mishustin outlined six 2026 priorities: population growth, economic expansion, high-tech exports, fair business conditions, labor efficiency, and technological modernization.

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