But you post this as a source, which quite literally states that the growth is coming from oil exports, and increasingly high levels of government spending (One can only wonder towards what). So is the source wrong?
If you go the IMF source this is drawing from, along with the Carniege Endowment shudder, both those sources that the BBC are drawing from describe the increase as coming from surging prices in oil and government investment into the MIC.
This increase also follows nearly a year of negative GDP growth in 2022, so if anything, Russia is simply regaining already lost ground.
Russia’s manufacturing PMI index is on a 18-year record high.
This goes beyond just regaining lost ground, this is a dramatic shift towards re-industrialization to curb the effects of foreign sanctions, including the establishing of new supply chain and trade routes (most notably towards the Far East with China, and with Iran) that naturally stimulate growth in previously neglected regions.
One sector that has slowly been declining though, is the mining industry. All other metrics including industrial output, construction, freight turnover, retail, agriculture, electrical consumption (a metric for economic activity) etc. are all trending up.
The reality is that the MIC is a relatively small part of the overall economy, so it logically cannot account of majority of the growth. What’s actually happening is that all the western companies leaving Russia along with the sanctions created a lot of business niches that didn’t exist before. Domestic businesses are now filling these niches to meet demand. Russian economy is becoming restructured to be a lot more self sufficient as a result, and this is a very positive thing for Russia in the long run.
But you post this as a source, which quite literally states that the growth is coming from oil exports, and increasingly high levels of government spending (One can only wonder towards what). So is the source wrong?
If you go the IMF source this is drawing from, along with the Carniege Endowment shudder, both those sources that the BBC are drawing from describe the increase as coming from surging prices in oil and government investment into the MIC.
This increase also follows nearly a year of negative GDP growth in 2022, so if anything, Russia is simply regaining already lost ground.
https://www.statista.com/statistics/1009056/gdp-growth-rate-russia/
Russia’s manufacturing PMI index is on a 18-year record high.
This goes beyond just regaining lost ground, this is a dramatic shift towards re-industrialization to curb the effects of foreign sanctions, including the establishing of new supply chain and trade routes (most notably towards the Far East with China, and with Iran) that naturally stimulate growth in previously neglected regions.
One sector that has slowly been declining though, is the mining industry. All other metrics including industrial output, construction, freight turnover, retail, agriculture, electrical consumption (a metric for economic activity) etc. are all trending up.
The reality is that the MIC is a relatively small part of the overall economy, so it logically cannot account of majority of the growth. What’s actually happening is that all the western companies leaving Russia along with the sanctions created a lot of business niches that didn’t exist before. Domestic businesses are now filling these niches to meet demand. Russian economy is becoming restructured to be a lot more self sufficient as a result, and this is a very positive thing for Russia in the long run.