The latest analysis of Rosstat statistics has confirmed that the military-industrial complex accounts for the majority of the growth in the gross domestic product of the Russian Federation in 2025. Specifically, 66% of the GDP growth recorded by official statistics is attributed to the production of tanks, bombs, and other armaments for the Russian army, which continues military operations against Ukraine.
This is reported by Business • Media
The Military-Industrial Complex Dominates Economic Growth Structure
As of the third quarter of the current year, out of the 0.6% economic upturn, 0.4 percentage points were provided by the “public administration and security organizations” sector. At the same time, the share of the military-industrial complex in GDP has nearly tripled compared to last year: by the end of 2024, the military-industrial complex contributed 1 percentage point to 4.3% of the overall economic growth.
Since 2022, Russian budget expenditures for military needs, weapon procurement, and law enforcement agencies have reached 42 trillion rubles, equivalent to 542 billion US dollars.
Sharp Increase in Military Production
According to NATO intelligence estimates, ammunition production in Russia has increased more than elevenfold – to 4.5 million units per year. Additionally, in November, the head of Rostec stated that Russia has surpassed all other countries in bomb production.
Scientists from the Carnegie Russia Eurasia Center note that the bloated military-industrial complex is turning Russia into a “one-time goods economy,” as everything produced is immediately destroyed on the battlefield. Trillion-ruble investments in the military-industrial complex do not create any long-term assets, such as highways, power plants, or schools. As a result, the Russian economy is becoming increasingly burdened but also poorer with each year of war.
Thus, although official Russian statistics show GDP growth, its foundation is formed by war expenditures, which do not contribute to the sustainable development of the country but rather deepen the economy’s dependence on the defense sector.