Russia's economy faces challenges as energy revenue drops and budget deficit widens.

Russia posted a budget deficit of $29 billion in Q1 2023 due to a 45% plunge in energy revenues caused by boycotts and sanctions. The country's spending jumped 34% to $99 billion, with defense spending going over budget by 54% in 2022. Russia's combined defense and security spending is expected to hit nearly one-third of the national budget in 2023. The Kremlin plans to post a deficit of no more than 2% of its GDP in 2023, but analysts predict it will likely exceed 2%.