In the first quarter of 2024, the real gross domestic product (GDP) of Russia grew by 5.4 percent compared to the same quarter of the previous year.

You have to look at inflation in relation to wages, not GDP. How is it that you're unable to understand such basic things? If the cost of living was outpacing salaries in Russia, please explain to me why the World Bank has just reclassified Russia as a high income country. I'm very curious to hear more about this new fangled economic theory you subscribe to. https://blogs.worldbank.org/en/opendata/world-bank-country-classifications-by-income-level-for-2024-2025

[–] JohnDClay@sh.itjust.works 2 points 3 months ago (1 children)

Inflation accounts for the price of actual goods. GDP tries to measure how much stuff you're making. If you make the exact amount of stuff as last year but have 7% inflation, you're GDP would grow by 7%. So to find out how much stuff a country is actually making, you use inflation adjusted real GDP.

[–] yogthos@lemmy.ml -4 points 3 months ago (1 children)

That's not what GDP measures. GDP measures profit companies are making, not the salaries employees get paid. Also, inflation does not directly correspond to the cost of living either. Again, please explain how in your mind Russia became a high income country if the economy is shrinking and inflation is outpacing wages. I eagerly await to see your reasoning.

[–] welldraught@lemmy.ml 3 points 3 months ago* (last edited 3 months ago) (1 children)

Also does he mean yearly inflation, which is just reevaluated monthly? Whereas quarterly GDP growth? JohnDClay quarterly means four times a year. Furthermore single digit inflation is typically not considered as high. Also GDP growth does not necessarily talk of sucessful economic policy since there was strong decline before, but it does point to poor performance of sanctions.

[–] yogthos@lemmy.ml 2 points 3 months ago (1 children)

Exactly, these are completely separate concepts that have no direct relationship with one another.

[–] welldraught@lemmy.ml 1 points 3 months ago (1 children)

Well there I would too disagree. His intuition was not completely wrong. Depending on what macroeconomic theory you like, gdp change and inflation are usually related. His interpretation was poor.

[–] yogthos@lemmy.ml 2 points 3 months ago

They're not directly related though, we often see growing GDP along with growing inflation. It's a perfectly normal scenario.