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Posted on 04/25/2024 3:29:11 AM PDT by Mount Athos
Russia’s economy is expected to grow faster than all advanced economies this year, according to the International Monetary Fund.
Russia is expected to grow 3.2% in 2024, the IMF said in its latest World Economic Outlook published Tuesday, exceeding the forecast growth rates for the U.S. (2.7%), the U.K. (0.5%), Germany (0.2%) and France (0.7%).
The prediction will be galling for Western nations which have sought to economically isolate and punish Russia for its 2022 invasion of Ukraine.
Russia says Western sanctions on its critical industries have made it more self-sufficient and that private consumption and domestic investment remain resilient. Meanwhile, continuing oil and commodity exports to the likes of India and China, as well as alleged sanctions evasion and high oil prices, have allowed it to maintain robust oil export revenues.
Russia’s military-industrial complex has also expanded significantly during the war as defense spending and production have rocketed. In short, Russia has adapted to a “new normal” as its economy has been put on a war footing.
The IMF predicted that Russia’s economic growth would moderate in 2025, however, declining to 1.8% “as the effects of high investment and robust private consumption, supported by wage growth in a tight labor market, fade.”
The Washington-based IMF includes the U.S., U.K., the euro area’s largest economies, Canada and Japan as advanced economies. Russia, China and India remain in its “emerging and developing” Europe and Asia categories, respectively.
The head of the IMF told CNBC in February that the Russian economy was still facing significant headwinds despite the Fund’s rosy forecasts for the country of roughly 145 million people.
“What it [the growth data] tells us is that this is a war economy in which the state — which let’s remember, had a very sizeable buffer, built over many years of fiscal discipline — is investing in this war economy,” IMF Managing Director Kristalina Georgieva told CNBC’s Dan Murphy at the World Governments Summit in Dubai in February.
“If you look at Russia, today, production goes up, [for the] military, [and] consumption goes down. And that is pretty much what the Soviet Union used to look like. High level of production, low level of consumption.”
Georgieva said she believed the Russian economy also faced challenges related to an exodus of skilled workers and “because of the reduced access to technology that comes with ... sanctions.”
Bank of Russia Governor Elvira Nabiullina told lawmakers in Russia’s State Duma on April 8 that production in the country is being constrained by worker shortages, according to Reuters, although she noted that Russia’s economy was continuing to grow at an impressive rate.
Last week, Nabiullina also sounded a note of optimism over Russia’s inflation rate (at 7.7% in March), saying she believed the peak had passed, although it was too early to start cutting rates.
Russia’s central bank is expected to hold its key rate at 16% at its next rate-setting meeting on April 26, a Reuters poll showed last month. Analysts polled by Reuters expect rates to stand at 12.5% by the end of 2024, Reuters reported last week, far above the central bank’s inflation target of 4%.
Having begun his fifth term in office, Russian President Vladimir Putin has vowed to raise living standards in Russia, with increased spending on education, health care and public infrastructure. He also signaled that taxes on larger companies and wealthier individuals will rise.
we outspent Russia in the way back and nearly collapsed them. now, with help of our warmongering mowrons who run this country, they are returning the favor. just my 2.
HAHAHAHAHAHAHAHAHA.
Yeah, how is it’s debt to gdp ratio doing?
After twelve rounds of sanctions, Russia’s economy is growing while Biden has ruined America. Nice work, Zeepers.
Its a lot better than ours.
Yes, but they’re still behind us in providing gender affirming care for their children.
“If you look at Russia, today, production goes up, [for the] military, [and] consumption goes down. And that is pretty much what the Soviet Union used to look like. High level of production, low level of consumption.”Georgieva said she believed the Russian economy also faced challenges related to an exodus of skilled workers and “because of the reduced access to technology that comes with ... sanctions.”
Bank of Russia Governor Elvira Nabiullina told lawmakers in Russia’s State Duma on April 8 that production in the country is being constrained by worker shortages, according to Reuters, although she noted that Russia’s economy was continuing to grow at an impressive rate.
These are strong headwinds to overcome.
President Putin is promising both guns and butter. He cannot deliver both.
Wars of attrition are bad for economies.
Put some ice on that.
Russian gdp dropped 2.1% in 2022 and 2.5% in 2023. Also, munitions created for the war count in gdp. But once they are used they have no more economic utility.
This is why I say this war is a ruse and Putin is doing his part in this socialist charade to help collapse the West.
Also, a large portion of US growth is gov’t, the same as Russia.
Building a thousand cars or in this case tanks…. And then getting them blown up does indeed add to gdp, but is it a positive?
All numbers are bs, but like China there is no way to confirm what Russia claims.
Time will tell
“Also, munitions created for the war count in gdp. But once they are used they have no more economic utility. “
Like US corporate spending on diversity, ESG, DEI and wokeness. ?
Actually not. Shell blows up and is gone. Money spent of Leftist poison does damage for years and years.
“Yes, but they’re still behind us in providing gender affirming care for their children. “
There is a castration gap.
Biden should cut off more domestic energy production to increase Russia’s market share even further - that’ll show ‘em!
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That is a good point - but Biden's attack on our own energy production over the years has no doubt helped Russia and made the sanctions less effective. He has in effect funded Russia's war effort.
GDP is a much misunderstood measure.
A country in the midst of military mobilization is going to have a massive increase in GDP, purely because of the increase in government spending.
The greatest single year increase in US GDP occurred in 1942, 18.9%
Because of the vast expenditure on military mobilization of course.
All the men who have cut off funding to Ivy League schools over DEI and such are on the left. Warren Buffett, left winger, hates ESG and has denounced it at every turn. The presidents of Harvard and MIT have been fired. Bud Light tanked over the trans debacle. NYC riot cops are arresting Hamas protesters. The tolerance for much of that is coming to an end.
You’re wrong when you say Russia’s GDP fell by 2.5% in 2023.
It actually grew by 3.6%
https://www.voanews.com/a/russia-economy-grew-in-2023-despite-war-and-sanctions/7478952.html
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