Russia’s economy grew again in the third quarter of this year despite tough Western sanctions against the country over the war in Ukraine. According to the Russian statistics agency Rosstat, growth was 5.5 percent compared to a year earlier. That is the highest growth rate since the end of 2021 – when the economy recovered from the corona pandemic – and more than expected.
This represented stronger growth than in the second quarter, when it was a plus of 4.9 percent. Putin’s war economy benefits, among other things, from the large military expenditure on the fight in Ukraine. Consumer spending is also stimulated by higher wages and government support programs for households. Furthermore, Russia continues to make a lot of money from the export of fossil fuels, especially to India and China.
Workers fled
The Russian economy shrank last year. Due to the invasion of Ukraine, many major Western companies left the country. Many Russian men have also fled abroad to avoid conscription and many men have been mobilized to fight in Ukraine. This has led to significant labor shortages.
Elections
President Vladimir Putin has praised economic growth. There will be presidential elections in Russia in March. Russia is struggling with high inflation. To combat this, the Russian central bank has sharply raised interest rates.
The central bank expects growth of between 2.2 and 2.7 percent for this year as a whole. The Minister of Economic Affairs said last week that he thinks growth could be around 3 percent.
Also read:
Only 0.3 percent of occupied territory liberated in Ukraine: is counter-offensive a lost cause? Or is there still hope? Former Colonel Housen explains (+)
LOOK. Wagner mercenaries emerge during conquest in Mali
LOOK. Putin again unveils XXL table: an overview
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss anything from the stars.