Sanctions Driving Growth in Russian Economy (The Duran)

The Russian economy is growing at above 4% per year thanks to the sanctions. This is what happens when countries are forced to operate self sufficiently, where the biggest growth drivers are coming from domestic industry, with across the board manufacturing growth, replacing imported products. The inflation in Russia, highlighted in the West, is due to (temporary) logistics bottlenecks caused by the sanctions, not from overspending or too much credit being issued. Government finances also seem under control. 

It also helps the Russian State that the country is making money from their vast resource base. Military spending is also driving economic activity, but it's not the only thing they have going, and it is an expense/liability on the balance sheet. Meanwhile, other countries in Europe, like Germany, are on the path to deindustrialisation due to high energy costs and outsourcing.  

[Posted at the SpookyWeather2 blog, February 13, 2025.]