The International Monetary Fund this month raised its 2024 forecast for Russia's GDP growth to 3.2% from the 2.6% projected in January, pointing to strong government spending and investment related to the war, as well as higher consumer spending in a tight labour market and strong oil export revenues in spite of Western sanctions.
“pointing to strong government spending and investment related to the war”
Strong gdp growth is typical for countries at war. It is one of the traditionally mentioned cases where the gdp metric fails to reflect economic well being. This caveat is not new, or unique to me. It should have been mentioned in your macroeconomics classes. Nazi Germany for instance had tremendous GDP growth in WWII while economic misery was increasing.
Did you really think Putin’s Afrikan Korps would kapture Kharkiv? Lol!
[...government spending and investment related to the war, as well as higher consumer spending in a tight labour market...]
Government spending (to replace lost equipment), higher consumer spending (inflation), tight labor market (conscripted workers killed). Yea, sounds like it’s going well for Russia. I’m happy for you.