Almost two and a half years ago, the Russian Federation forces launched the ‘Special Military Operation’ in Ukraine, turning President Vladimir Putin’s country into an impoverished pariah for the western world… or did it?
Despite the mind-numbing number of sanctions levied against Russia and its allies, their economy has been consistently growing, to the point where the World Bank is now classifying Russia as a ‘high-income country’.
Business Insider reported:
“On Monday, the World Bank announced it has upgraded Russia from an upper-middle-income country to a high-income country, according to a report from the financial institution’s economists.
“Economic activity in Russia was influenced by a large increase in military-related activity in 2023,” World Bank economists wrote in their report.”
In 2023, Russians earned $14,250 per person on a gross national income basis.
Russia’s recent growth is primarily driven by wartime demand for military goods and services.
“Russia’s trade jumped by nearly 7% last year, while activities in the financial sector and construction grew by 6.6% and 3.6%, respectively. This boosted Russia’s real GDP — which is economic growth adjusted for inflation — by 3.6%.”
Far from crippling Russia, the war in Ukraine may have strengthened Russia’s economy, and led to an increase in both real and nominal GDP.
Newsweek reported:
“Its new classification would put Russia on par with the U.S. and the other G7 nations who have been trying to handicap its economy since 2022.”
As we can see, the US and EU sanctions flopped.
“Last week, a report by a U.K. think tank argued that the country has been more than able to replenish its arsenal, and that sanctions had proven “manifestly ineffective” in curtailing the Russian war machine.
One of the paper’s authors, Gary Somerville, told Newsweek that defense contractors were able to bypass embargoes, using ‘front companies’ and backchannels to sneak military components into Russia.”
Data from the World Bank is evidence that Russia is able to endure Western sanctions, and the war only strengthens the country’s economic capabilities.
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The post WAR ECONOMY: Russia Bucks Sanctions From the West, Gets Upgraded by World Bank to ‘High Income Country’ appeared first on The Gateway Pundit.
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