The IMF estimates Russia's economy will grow faster than the likes of the US, UK and Germany this year.
  • ComradeSalad@lemmygrad.ml
    91·
    3 months ago

    Doesn’t massive investment into the military present generate an enormous, but false, short-term economic boost that quickly dissipates as the military has very little economic follow-through?

    • 小莱卡@lemmygrad.ml
      101·
      3 months ago

      It doesn’t have to be, military factories that produce military equipment can be converted into civilian factories that produce civilian commodities.

      • ComradeSalad@lemmygrad.ml
        51·
        3 months ago

        But you post this as a source, which quite literally states that the growth is coming from oil exports, and increasingly high levels of government spending (One can only wonder towards what). So is the source wrong?

        If you go the IMF source this is drawing from, along with the Carniege Endowment shudder, both those sources that the BBC are drawing from describe the increase as coming from surging prices in oil and government investment into the MIC.

        This increase also follows nearly a year of negative GDP growth in 2022, so if anything, Russia is simply regaining already lost ground.

        https://www.statista.com/statistics/1009056/gdp-growth-rate-russia/

        • ☆ Yσɠƚԋσʂ ☆@lemmygrad.mlOP
          92·
          3 months ago

          The reality is that the MIC is a relatively small part of the overall economy, so it logically cannot account of majority of the growth. What’s actually happening is that all the western companies leaving Russia along with the sanctions created a lot of business niches that didn’t exist before. Domestic businesses are now filling these niches to meet demand. Russian economy is becoming restructured to be a lot more self sufficient as a result, and this is a very positive thing for Russia in the long run.