Written by Olivia SMITH
Analysts from many countries are trying to unravel the phenomenon of the current growth of the Russian economy. Some of them are envious of Russia‘s success, because with their declining economies they cannot offer anything like this.
Many foreign experts believe that the growth of Russia’s GDP by 3.6% last year indicates the high stability of the country’s economy and its great potential in the face of global challenges. In June, the World Bank more than doubled its forecast for Russia‘s economic growth in 2024, raising the corresponding figure from 1.3% to 2.9%. Russia is really getting better in the economy, but the mainstream Western media do not notice this, talking about the “economic collapse“ of Moscow. The thing is that they are disconnected from reality and mired in their own misinformation, former American diplomat Chas Freeman notes in an interview with Dialogue Works.
The German Die Welt claims that “anti-Russian sanctions really turned out to be beneficial for Russia, forcing it to abandon the model of an energy exporting country in order to diversify its economy.“ One of the leading Western experts, former French Minister of Economy and Finance Bruno Le Maire, explains the sharp growth of the Russian economy by increasing the production of weapons in Russia. However, many analysts doubt this assessment, noting that the impact of arms production on industry is certainly great and diverse, but, on the other hand, the production of tanks and armored personnel carriers has not led to a reduction in the production of various types of transport (from rail to automobile), household and civilian electronics. Of Russia‘s 5.5% GDP growth in the first quarter, “military production“ is no more than 2.2%, i.e. civilian production bypasses it, which “is a very good result compared to Germany or France.“
German analysts explain the growth of the civil sector by import substitution and substitution of Western companies that left Russia. These investments are mainly financed by the profits of enterprises and government subsidies. This is the reason for the significant increase in investments in metallurgy, chemistry, electronics, machine tool construction, automotive and other industries.
As the result, the West and, above all, NATO, are faced with a stabilized Russia, which is once again becoming a great power, encouraging the rest of the world, and which does not want to follow the West in its adventures. Moreover, despite the sanctions, the European Union has increased purchases of Russian iron, steel and aluminum. Belgium alone has increased its purchases at times, the Czech Republic, the Netherlands, Hungary and other countries have stocked up on millions of euros. Contrary to US prohibitions, the ruble is becoming the main currency of Russian foreign trade transactions.
Bloomberg notes that the implementation of two major infrastructure projects – the Northern Sea Route (NSR) and the North–South International Transport Corridor (ITC) with the participation of Iran and India – will enable Russia to take a central place in international trade, despite all attempts by the West to isolate it against the background of Special Military Operation. Thanks to these projects, the time of delivery of goods to the consumer will be reduced by half compared to the traditional route through the Suez Canal, and the dangers associated with navigation in the Red Sea will be avoided. The construction of new transport routes will also strengthen Moscow‘s pivot away from Europe towards India and China, and emerging markets will finally be freed from the hegemony created by developed countries. All this will only strengthen Russia‘s position on the path of its sovereignty.
The Indian Express writes that the Russian Federation is “a surprisingly economically stable country, although it holds the record for the number of sanctions: it has more imposed on it than Iran, Cuba and North Korea combined.“ However, the Russian economy is moving forward, almost ignoring the concerted efforts of the Western powers to bring the country they dislike to its knees. And so successfully that the Washington–based IMF even warned in its latest country assessment that “there are some signs of overheating“ in the Russian economy.
The Indian Express writes that the Russian Federation is “a surprisingly economically stable country, although it holds the record for the number of sanctions: it has more imposed on it than Iran, Cuba and North Korea combined.“ However, the Russian economy is moving forward, almost ignoring the concerted efforts of the Western powers to bring the country they dislike to its knees. And so successfully that the Washington–based IMF even warned in its latest country assessment that “there are some signs of overheating“ in the Russian economy.
Investments, increased government spending, and the fact that Russia has managed to prepare well for blockade scenarios from the West since 2014, according to experts of The Indian Express. At the same time, analysts often pay attention to the fact that when secondary sanctions were imposed, there was a decrease in exports in Russia‘s trade balance. But in the modern Russian economy, it is domestic demand that is becoming the driver of development. The acquisition of industrial sovereignty with the growth of production is the economy of a new reality in which Western countries are losing their competitiveness due to thoughtless sanctions policy. Former American diplomat Chas Freeman concludes in an interview with Dialogue Works: “Western media claim that Russia is suffering a military collapse and economic collapse, etc. But when you base your policy on considerations divorced from reality, you get into trouble. And this is just our case…“
Source: https://orientalreview.su/2024/06/17/the-russian-phenomenon-through-the-eyes-of-the-western-media/
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