Don?t Underestimate the Russian Economy
The Russian economy showcases growth despite imposed sanctions and punitive measures taken against the nation amidst the ongoing Ukrainian conflict.
The post Don?t Underestimate the Russian Economy appeared first on LUXUO.
“The Ruble has collapsed. The Russian stock market closed due to fears of capital flight. Interest rates have more than doubled. Credit rating agencies have significantly downgraded Russia.” These were essentially the statements made by Antony Blinken, US Secretary of State, echoing the sentiments of Western officials who were counting on “massive and unprecedented consequences” for the Russian economy a week after the conflict with Ukraine began. The imposed sanctions and punitive measures were supposed to cripple the Russian economy. However, after a temporary setback, the Russian economy has now announced growth equivalent to that of France and the UK, and better than Germany, which is contracting.
Antony Blinken, US Secretary of State (Image courtesy of Getty)
The Russian bureaucracy has defied Western predictions that anticipated a “strangulation” through heavy economic and financial artillery. Moreover, the standard of living for Russian citizens, which was expected to exert intense pressure on their leaders to reverse course, has barely declined. The state has multiplied its stimuli towards the private sector, providing interest-free loans and investing jointly with certain companies. The only current th...
The post Don?t Underestimate the Russian Economy appeared first on LUXUO.
“The Ruble has collapsed. The Russian stock market closed due to fears of capital flight. Interest rates have more than doubled. Credit rating agencies have significantly downgraded Russia.” These were essentially the statements made by Antony Blinken, US Secretary of State, echoing the sentiments of Western officials who were counting on “massive and unprecedented consequences” for the Russian economy a week after the conflict with Ukraine began. The imposed sanctions and punitive measures were supposed to cripple the Russian economy. However, after a temporary setback, the Russian economy has now announced growth equivalent to that of France and the UK, and better than Germany, which is contracting.
Antony Blinken, US Secretary of State (Image courtesy of Getty)
The Russian bureaucracy has defied Western predictions that anticipated a “strangulation” through heavy economic and financial artillery. Moreover, the standard of living for Russian citizens, which was expected to exert intense pressure on their leaders to reverse course, has barely declined. The state has multiplied its stimuli towards the private sector, providing interest-free loans and investing jointly with certain companies. The only current th...
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