Notes

This is your economy on war. It can feel confusing to see vibrant economic results coming from Russia—despite more than two and a half years of war and much-publicized Western sanctions. But the country continues to generate striking growth: Its GDP rose by 4.0 percent in the second quarter of 2024, and it looks certain to rise more than any advanced economy’s for the rest of the year.

How is that possible? Today, Dmitri Alperovitch explores a transformation in Russia’s economy that’s enabling it to run hot in the near term—but risks burning it out in the long.

—Michael Bluhm