Amundi expects Russia’s gross domestic product (GDP) to grow by 1.5% in 2024 and by 2% in 2025, compared with 0.5% and 1.2% for the euro zone.
GDP is a function of several things including government spending. Russia is throwing their war chest at war material production. That will absolutely cause GDP to increase sharply. However, like many things Russia is doing right now, it is a short term strategy.
That metric is very tricky and it was mentioned so often in the last 20 years there some started to suspect it was explicitly tailored for that situation, up to the point GDP abbreviation (ВВП) are Putin’s initials. War production was indeed ramped up - I don’t know about regular ammunition and materiel (tho obviously sped up), but there were a lot of news about new drone factories since they’ve got hyped up. It adds %s, but it’s basically government paying itself for soon-to-dispose products it itself uses, not a factory or a business where it takes it’s funds to do so. Not a sustainable model, but who knows how much they are able to put into it.
GDP is a function of several things including government spending. Russia is throwing their war chest at war material production. That will absolutely cause GDP to increase sharply. However, like many things Russia is doing right now, it is a short term strategy.
Russia is also depleting their Soviet inheritance rapidly in Ukraine. There is visual confirmations of over 13,000 Russian vehicles lost in Ukraine, including over 2,500 Russian tanks lost.
That metric is very tricky and it was mentioned so often in the last 20 years there some started to suspect it was explicitly tailored for that situation, up to the point GDP abbreviation (ВВП) are Putin’s initials. War production was indeed ramped up - I don’t know about regular ammunition and materiel (tho obviously sped up), but there were a lot of news about new drone factories since they’ve got hyped up. It adds %s, but it’s basically government paying itself for soon-to-dispose products it itself uses, not a factory or a business where it takes it’s funds to do so. Not a sustainable model, but who knows how much they are able to put into it.