As of: February 8, 2024, 10:58 a.m
By: Bona Hyun
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Press
Split
Despite the war in Ukraine, the Russian economy is doing anything but bad.
This is proven by the latest figures from Moscow.
But what is behind the growth?
Moscow – Will Vladimir Putin succeed in saving Russia’s economy?
Despite the war in Ukraine and sanctions imposed, the economy is growing strongly.
After a decline in the first year of the war, gross domestic product (GDP) will grow again in 2023.
Moscow explains the good figures with consumer demand and investments.
GDP growth in Russia was also expected by foreign experts.
Despite sanctions and the war in Ukraine: the Russian economy is apparently growing
The experts attribute this primarily to increased government spending on armaments and the military.
The wage payments as well as compensation for those injured or killed provide many Russian families with more money.
Because of the shortage of workers, wages are rising.
Vladimir Putin has been in power for almost a quarter of a century.
© Gavriil Grigorov/Pool Sputnik Kremlin/AP/dpa
Already in the spring of 2023 it was said that the Russian economy was growing for similar reasons.
At that time, GDP in the second quarter increased by 4.9 percent compared to the previous year, as the national statistics office
announced according to
Spiegel .
Growth is primarily supported by government spending
.
Spending on the war against Ukraine would be expanded.
This supports industrial production.
Private consumption is being stimulated by increased social benefits and higher wages.
The effect of Western sanctions could be defused.
Russia's economy is growing - but prices for eggs and gasoline are falling
The state statistics office in Russia published positive economic data for 2023 weeks before the Russian presidential election.
The economy grew by 3.6 percent compared to 2022, the Rosstat authority announced on Wednesday (February 7) in Moscow based on initial calculations.
In 2022, GDP would have shrunk by 1.2 percent.
That was the year in which Russia began the war of aggression against Ukraine and was hit with many sanctions.
Rosstat linked the data with information on the price development of eggs and gasoline.
The authority has now announced that egg prices have fallen by 2.6 percent since the beginning of the year.
The Russian population should be happy about that.
The price increases of the past few months have recently caused dissatisfaction with both goods.
Gasoline has become a few kopecks cheaper in the past week.
However, the price of diesel has increased.
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Underestimated by the West?
Putin's economy is probably growing strongly, but experts have doubts
Russian economic figures should be viewed with caution.
Statistics are part of warfare, reports Die
Zeit
.
The State Duma passed a law in February 2023 that allows the government to keep data secret.
Rosstat could change the method of data collection if Putin does not agree with the numbers.
An article in the Financial Times
from 2023 could also sow doubts about economic figures from Russia
, which states that the Russian economy is suffering from considerable strain as a result of the war.
The Financial Times
cited a report from the US Treasury Department.
However, observers see a threat to the economy in a worsening labor shortage if President Vladimir Putin drafts more soldiers for the war in Ukraine.
This is likely to still be a problem, as Putin is reaching the limits of his wave of mobilization.
(bohy with dpa)