Russia’s economy has proven resilient to Western sanctions and could surpass the EU and the US in terms of GDP growth. Economic commentator Patricia Cohen writes about this in an article in the newspaper. New York Times.
Since Russia began military operations in Ukraine in February 2022, its economy has had to “adapt to dramatic changes with incredible speed,” the observer noted. While the European Union quickly cut off economic relations with the Russian Federation, destroying established supply chains and reliable sources of income from abroad, the United States froze hundreds of billions of dollars of Russia’s assets and cut off the country from the global financial system.
Nineteen months later, Cohen points out, the economic picture is “clearly mixed,” showing that Moscow has found other buyers for its oil and that Russia’s economy is far more resilient than many Western governments expected following a series of harsh sanctions.
“It is rapidly pumping money into the economy to finance the war machine, providing jobs for nearly all available workers and increasing weekly wages. Total economic output (GDP), which the Bank of Russia estimates could grow by as much as 2.5 percent this year, could surpass that of the European Union and perhaps even the United States.
At the same time, Cohen cites the words of Laura Solanko, senior advisor at the Bank of Finland’s Institute for Transition Economies, that gross domestic product is a rather poor indicator when a country is in a state of military conflict. because “bullet production increases the country’s growth rate, but it certainly does not increase the quality of life.”
Denis Manturov, formerly head of the Russian Ministry of Industry and Trade statedIt was stated that the option of avoiding the use of the dollar in international trade could be a clearing mechanism that would be implemented both in national currencies and directly in physical weight.
Previously Mishustin in the name Avoid excessive optimism.