Russia’s wartime economy is having more problems.

Military spending has made the budget deficit bigger.

Growth has slowed down.

Consumers and businesses feel worse.

But economists say this does not mean a collapse is near.

High oil prices help because of the Iran war.

So money keeps coming in for now.

Unemployment is low.

The government spends money in poor regions.

This also stops people from complaining.

This fits the Kremlin’s message of stability.

A parliamentary election is held Friday through Sunday.

Still, economists warn about longer-term problems.

These problems are weakening the economy’s foundations.

They could one day cause a crisis.

Consumer sentiment has fallen since its 2024-25 peak.

Gasoline prices are higher.

Ukrainian drone strikes have caused shortages and hit refineries.

Strikes on online retailers Wildberries and Ozon have cost small businesses inventory and customers.

Growth has slowed from over 4% in 2023-24.

The government expects 0.6% this year.

The Levada Center’s consumer sentiment index fell to 94 in the summer.

It was 116 in 2025.

In Moscow, voters mostly mentioned pensions and prices.

The budget deficit reached 2.8% of annual output by late July.

That is almost twice the target.

Reserve fund resources have shrunk to 1.6% of GDP.

This forces domestic borrowing at rates up to 17%.