this post was submitted on 29 Nov 2023
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Putin told you so in 2022, even in 2014

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[–] BombOmOm@lemmy.world 52 points 11 months ago* (last edited 11 months ago) (1 children)

Amundi expects Russia's gross domestic product (GDP) to grow by 1.5% in 2024 and by 2% in 2025, compared with 0.5% and 1.2% for the euro zone.

GDP is a function of several things including government spending. Russia is throwing their war chest at war material production. That will absolutely cause GDP to increase sharply. However, like many things Russia is doing right now, it is a short term strategy.

[–] andrew_bidlaw@sh.itjust.works 6 points 11 months ago

That metric is very tricky and it was mentioned so often in the last 20 years there some started to suspect it was explicitly tailored for that situation, up to the point GDP abbreviation (ВВП) are Putin's initials. War production was indeed ramped up - I don't know about regular ammunition and materiel (tho obviously sped up), but there were a lot of news about new drone factories since they've got hyped up. It adds %s, but it's basically government paying itself for soon-to-dispose products it itself uses, not a factory or a business where it takes it's funds to do so. Not a sustainable model, but who knows how much they are able to put into it.

[–] ShittyBeatlesFCPres@lemmy.world 37 points 11 months ago

I don’t know that GDP is a useful proxy measure for whether the sanctions have been effective. A war economy can (temporarily) look good in economic statistics better suited for peacetime but it’s the worst possible form of stimulus. It’s more like buying fireworks on a credit card than building infrastructure. GDP doesn’t measure prosperity; it measures activity.

[–] Moonrise2473@feddit.it 25 points 11 months ago

GDP is not a metric that can be used for measuring growth when a government is giving unlimited funding to a specific project.

As the name says, it's just the gross domestic product. If for example a government orders produce and purchase one billion dollars in something, it can be paper clips or it can be ammunition, then the GDP would increase of one billion dollars. That increase does not mean that the population is actually thriving. For example if a government decides to conscript all the farmers and send them to die in a senseless special military operation that led to produce 100 billions in tanks, the population would be starving even if the GDP increased by 100 billions. This is especially true when a government neglected the actual needs of their citizens for decades and instead of using revenue for building infrastructure decided to just amass wealth in huge monetary reserves

[–] AlteredStateBlob@kbin.social 25 points 11 months ago (1 children)

Great! Then they won't mind if more sanctions are added.

[–] dumdum666@kbin.social 21 points 11 months ago (1 children)

GDP is an especially bad measure if a country can just print additional money, like russia can, and pay domestic actors with it. Printing money expands the GDP.

So whoever wrote this Propaganda piece doesn’t understand basics or purposefully hides them.

[–] salvador@lemmy.world -5 points 11 months ago* (last edited 11 months ago) (1 children)

GDP is an especially bad measur

Whenever it doesn't favour US and the West vs Russia, it's a bad one. Otherwise, it's a good one. How else could it be?

[–] dumdum666@kbin.social 7 points 11 months ago

Whatever floats your boat. If it makes you happy that the russian economy grew in roubles- be happy about it. I don’t care. But don’t pretend that it has any practical meaning.

[–] gravitas_deficiency@sh.itjust.works 11 points 11 months ago

How is any economically-focused rag worth a damn taking anything they’re saying or the stats they’re publishing seriously? They’ve been very obviously cooking the numbers in a lot of ways since February 2022.

[–] antidote101@lemmy.world 3 points 11 months ago

Germany has been doing so much trading with them via krgyistan