Putin and Russia are in BIG Economic Trouble; Impact of Ukrainian war on Russia’s economy, Moscow’s economy’s size to reduce by nearly 10% since invasion, indicates IMF data

US President Donald Trump has claimed that According to the IMF data, in 2022, the size of Moscow’s economy was $2.3 thousand billion. From there, its economy’s size would reduce to $2.08 thousand billion as per IMF 2025 forecast. This means, the country’s economic size has shattered by almost 10% since the Ukraine invasion.

The cascading effect the Ukraine invasion had had on Moscow’s economy. The top Republican also said on his Truth Social handle that “most of Russia’s money are being spent on fighting Ukraine and that Moscow’s inability to capture the desired territories is “making them look like a paper Tiger.”

So, is the Ukraine war really taken a toll on Russia’s economy? Lets take a deep dive into Moscow’s economic situation prior to the Ukrainian invasion and what is the situation now!

Since, the time Moscow invaded Ukraine back in February 2022, Russia’s GDP has fallen from 5.9% (2021) to 1.5% (2025), according to the data of the International Monetary Fund (IMF).

Russia spending on the Ukraine war?

In December 2024, the US Defense Secretary Lloyd Austin had stated that Russia had spent over $200 billion (which translates to over ₹17 lakh crore as per Wednesday’s rupee to dollar conversion rate) since the invasion began in 2022.

There are reports that Kremlin has continuously augmented defence spending ever since 2022.

Trump has already written:

The US president has already written of Russia’s might. Earlier, he taunted them as ‘dead economy.’ And now he has said that they look like “ a paper tiger.” Donald Trump has also claimed that “Putin and Russia are in BIG Economic Trouble.”