The Russian Economy’s Growth is Driving the US, EU and G7 Crazy

The Russian Economy’s Growth is Driving the US, EU and G7 Crazy

good day and welcome to SEO bricks
Insight today I want to focus on the
Russian economy and how it growth is
driving uh driving the West particularly
the US and the EU crazy now the major uh
and influential organizations which have
previously predicted the collapse of the
Russian economy due to sanction have
once again revised their forecast the
world bank now expects uh 2.2 2% growth
by the end of the year while the
international monetary fund has revised
its forecast at
3.2% in Russia domestic demand is
recovering industrial production is
booming and no non oil and gas revenues
are growing well I’ve mentioned all this
before in some of my other videos due to
things like agriculture fertilizers Etc
in Europe the situation is markedly
different and the countries that
initiated this sanctions have long been
in recession and their Industries in
Decline now in April the World Bank
upgraded Russia’s GDP growth to
2.2% this is stated in their updated
economic forecast for developing
countries in Europe and Central Asia
back in January the the bank expected
only
1.3% uh growth for the year furthermore
GDP per growth uh uh forecast was
forecast uh 1.1% for 2025 and uh from uh
1
0.9% and in 2024 inflation in Russia is
forecast to be
6.9% with a gradual decline to its
Target by 4% by
2026 now the international monetary fund
presented uh a more positive assessment
of Russia’s immediate uh economic
prospects the IMF has revised its growth
forecast for the Russian economy in 2024
increasing it from 2.6 to 3.2% now MF
predicts that
the this is due to uh lots of internal
factors now the funds forecast also
indicate that it inflation in Russia
will increase to
6.9% uh in 2024 but reduced to
4.5% in
2025 also says that unemployment is
expected to be at 3.1 and
3.2% respectively which is you know
incredible for any industrial economy
and particularly not one that is subject
to so what 19,000 sanctions now the fund
will submit its adjusted forecast to the
Russian Ministry of economic development
now in light of the robust economic
growth observed at the start of the year
the current estimate of GDP growth maybe
continue to be revised upwards and
that’s according to L denisov who’s a
director of the ministry russan
Ministries Department of microeconomic
analysis and
forecasting he says International
organizations have recognized that
contrary to expectations the Russian
economy has done uh remarkable was shown
remarkable resilience so uh Bond
Alliance predictions of uh the Russian
economy and um tatters isn’t yet another
of that haridan rants that has proved to
be particularly false
now one of the things that we have to
look at firstly industrial production in
Russia according to the report has
actively been growing through the past
year at the end of 2020 three activity
in the manufacturing sector reached
record levels that were last seen in
2017 furthermore the growth of
employment in the real sector was
highest in almost a quarter of a century
a quarter of a century takes you back to
the yelson years so is a huge level of
growth I mean according to data from
rosat which is the Russian statistics
agency the highest growth in production
in 2023 was seen in Industries related
to the production of computers they
showed an increase of
32.8% finished Metal Products except for
Machinery equipment and an increase of
27.8% production of vehicles aircraft
Etc increased by more than 25% now
Natalia pora who’s an analyst at digital
broker notes that business activity in
Russia in its industry is supported by
the high Capac capacity utilization and
stable positive Dynamics in increasing
retail sales
volumes Enterprise monitoring uh
conducted by the bank of Russia
indicates that the red the level of
production capacity utilization at the
end of 2023 had reached its historical
maximum of
81% additionally any Western loans have
been actively replaced by domestic
Finance so the Russian uh economy and
its banking system is able to do the
financing and the financing of the the
stability and financing of the banking
system and sanctions has been a key
factor in ensuring this positive trend
so the banks are in good shape and
there’s not a lot of U worries about uh
foreign loans anymore now the Russian
economy has seen uh Positive Growth as a
result of yeah certain level of high
State expenditure and increased
investment particularly in the context
of the develop the import substitution
program right I mean that has been to
support all Industries to replace what
was foreign by uh stuff made in Russia
and despite the Western restrictions the
Russian economy has maintained access to
Major World Markets both as a buyer and
a seller I mean parall import
instruments have been streamlined and
new trade corridors have been opened up
with friendly countries so there’s very
little that here in Russia that you
can’t get that uh you used to get
despite sanctions now the Russian
economy is growing confidently thanks to
two key factors that’s yeah the sharp
increase in government spending and the
successful switching of foreign trade in
its pivot to Asia according to the
economy
uh Constantine tarov the switch appears
to be driven mainly by private
businesses rather than governments so
not government intervention and is the
market nature of the Russian economy is
acts as the life line that prevents it
from drowning in the face of economic
shocks and uh all the other things now
the price caps and restrictions imposed
by the US EU and G7 on shipping
companies and tankers are not having any
major effect uh in fact they’re not
having the desired effect the main
export grade uh ‘s crude is now um
priced much higher than it was last year
and the year before and it’s about if
you work it out to around the co times
it’s the same as it’s done for the Last
5 Years
anyway according to the uh oil uh
pricing agency Argus Euros on an fob
basis uh that’s free on board uh it it’s
basically selling at about
75% $75 per barrel that’s above the
ceiling of 60% and deliveries to India
are already at $88 and that’s just a
3.8% discount to The Benchmark of Brent
Brent nor SE oil when did that last
produce it in volumes now when Russian
SPO that’s Eastern Siberian Pacific
Ocean oil leaves the poort price is
$84 and it basically uh when it’s on the
tanker can go up even more so this is a
more expensive variety it’s never been
uh anywhere near the cat for right now
if you look at the increased
Transportation cost and the changes in
the logistic routes they’ve only had a
minor impact on uh what Russia sells it
uh oil prices for I mean even the IMF
has stated in it latest report that uh
Russian oil experts to China and India
were well above the ceiling throughout
the second half of 2023 so it’s
unsurprising that despite all the
efforts of the West Russia is earning
more and more money from uh its exports
now along with oil
prices budget revenues are also raising
the federal budget in uh 2020
received uh 8.8 trillion rubles in oil
and gas revenues which is uh if you work
it out about uh
88 billion uh in dollar terms which is
about um 8.8 billion uh more than the uh
amount that they were banking on I mean
in the first quarter of 2024 oil and gas
revenues according to the Russian
Ministry of
Finance uh amounted to
uh 2.9 trillion rubles which if you
divide the ruble by 90 it works out at
about uh
3540 um billion
dollar and that represents a year only
year increase of uh 2.1 trillion rubles
I mean in March 2023 the figure was
1.6 so it’s a lot less in March 2024 it
was 1.3 billion right so we’re looking
at these all continue to uh pump money
in back into uh what’s really going
on now a significant driver of the equum
is the high domestic demand and that’s
because of the higher wages I mean wages
in Russia are actually growing uh and u
a shortage of personnel and uh it’s not
because
um there’s a shortage of uh people it’s
a shortage of people to fill the skill
jobs and even the retail level so you
know so we’re going to see uh a lot of
things happening according to Maxim
restof who’s the head of the ministry of
Economic Development domestic demand
will continue to drive Russia’s
GDP I mean uh the population inflation
expected for the year are slightly
decreased because they noticed that
prices are not going up as much as they
thought they might have been so they’re
all still spending and not worried about
it plus their wages are up
anyway the ministry also noted that the
the largest non oil and gas revenues uh
coming in are consistently positive now
those are foren things like agriculture
fertilizer Etc now even the financial
times are observed in uh fa and that’s
not a real kind of uh friend of Russia
or even friendly towards it it said
Western economists were surprised by the
resilience or the Russian economy in the
face of sanctions in order the Russians
had managed to avoid a recession by
limiting its Reliance on Western
resources and increasing its defense
spending well defense spending to a
limited extent but you know uh it’s not
all of it however it does know in
contrast Europe has experienced a
serious decline in GDP in most of the
Euro Zone including Poland Lithuania and
Lavia plus the so-called Powerhouse
economies of Germany and France who
found themselves uh in not a particular
good position now judging by the
forecast of the international
institutions these ins scares of
anti-russian sanctions are not going to
come back soon and the whole whole
entire EU in uh 2024 will stagnate
now it does looked like the eu’s refusal
to purchase um energy resources uh from
Russia has provoked record inflation in
the EU I mean that’s been going on and
although they say that inflation this
month is only 3.2 you can tell that
inflation has been uh well above of 30
40% over the last two years and that’s
hit the competitiveness of their local
Enterprises now Russia’s increased its
interest rates and uh basically that
helped because it’s not interfered with
the growth whereas in the EU business
activity in u the industry and services
sector of the Euro Zone reached a record
low uh recently and that’s for over the
past 3 years I mean according to the
forecast of the IMF Etc industrial
production in Europe has continued to
decline this year Germany Europe’s
largest economy will grow by just
0.2%
0.2% and that was after last year’s con
contraction now the U the UK GDP is
expected to grow by half a percent half
a percent and I I grew up in the UK so
you know I obviously cover and look at
what’s on there in France again growth
is below 1% overall the EUR whole Euro
Zone economy has project to expand by
less than
1% that’s with the global economic
growth projection to be 3 2% so the Euro
Zone who imposed all of these uh things
on Russia have basically uh shot
themselves in the food now according to
uh the IMF it’s not going to get any
better in uh 2025 and 2026 for the Euro
zone so anyway in suay it seems that the
US EU G7 attempts to destroy Russia’s
economy of fail and a large amount of
credit for that goes to not only the
Russian government its Central Bank and
its policies but its membership of the
recks being being part of bricks and
being good friends with uh India China
and various other countries who are
members of the bricks and members of the
Shanghai cooperation have made sure that
Russia is not friendless and it’s able
to uh continue its economic growth now
thank you for watching do like and
subscribe do visit our website for all
the stories that this video was based on
and lots of other interesting articles
now I look forward to making another
video and I’ll see you all soon thank
you

The Russian economy’s growth is causing a stir in the US, EU, and G7 countries. Explore the real impact of western sanctions on the Russian economy in this video as Rhod Mackenzie looks today at why the major and influential international organisations, which have previously predicted the collapse of the Russian economy due to sanctions, have once again revised their forecasts.

Read more here:
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