Russia’s wartime economy is under growing strain.

Military spending has pushed up the budget deficit, and growth has slowed.

Consumers and businesses are also feeling gloomier.

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

High oil prices, helped by the Iran war, keep money flowing in for now.

Low unemployment and government spending in poor regions also limit public complaints.

That fits the Kremlin’s message of stability before a parliamentary election held Friday through Sunday.

Still, economists warn that longer-term problems are weakening the economy’s foundations.

These problems could one day cause a crisis.

Consumer sentiment has fallen since its 2024-25 peak.

Gasoline prices are higher, and 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, down from 116 in 2025.

In Moscow, voters mostly mentioned pensions and prices.

The budget deficit reached 2.8% of annual output by late July, almost twice the target.

Reserve fund resources have shrunk to 1.6% of GDP.

This has forced domestic borrowing at rates up to 17%.