Quote (Malopox @ 5 Feb 2024 14:04)
1) Wartime spending doesn’t boost GDP it changes its structure - less cars, more missiles/tanks - you still need to produce said stuff. Russia is far away from wartime economy. Civilian goods are well produced, majority of the people are blissfully unaware about what’s happening at the front besides generic “people die, nato, ukraine” or whatever TV feeds them.
2) Possibly. Commodity supply chains have been disrupted by G7 countries (not Russia or China) giving Russia more revenue (arguably in the short term) as big chunks of its GDP depends on commodity production compared to eg G7 GDP mix. This still plays into Russian hands.
3) Global economy is not in the mud, China is doing fine, growing 5% in 2023 and poised to grow 5% again in 2024 and 4.5% in 2025. For an economy of such size this is an incredible feat. The only real loser here is Germany which refuses to investigate NS2 and retake its lost sovereignity, by kicking out the likes of Annalena on the street with no unemployment allowance.
1) Wartime spending and wartime economy are two different things. Wartime spending happens any time a government drastically increases public spending due to an ongoing or upcoming war. A prime example would the economic boom of Nazi Germany during the late 1930s. Russia is absolutely in wartime spending mode.
2) Commodity supply chains got disrupted, but make no mistake, unless Europe stopped all support for Ukraine, Russia was gonna close the gas tap anyway. They had already stopped all gas transit through Nordstream 1 based on the flimsiest of excuses at a time when Germany and other European countries were still very willing to receive that gas. Nordstream 2 had never gone online to begin with.
The messaging by Western leaders contributed to the panic on the markets and sent prices soaring even higher than they needed to be, it was moronic, I already said as much back in 2022. Just like I said that the oil sanctions would be toothless since it's a fungible commodity and global supply chains would just get shuffled around.
Still: this effect has mostly faded by now. Energy prices have come down from their peak since then, but remain on a relatively high level for a myriad of reasons which all have nothing to do with the fundamental strength of the Russian economy.
3) China has soaring youth unemployment and sits on a gigantic housing bubble, their government and central bank are barely able to stop it from bursting. Chinese imports remain very muted, which drags down export-heavy Western nations like Germany, but also affects places like Japan. Germany in particular has committed about a dozen different, horrible policy mistakes over the past 20 years which are now all coming home to roost, it's not like everything would be well and good if only they had more Russian gas.
This post was edited by Black XistenZ on Feb 5 2024 07:25am