Western media reveals the recovery of the Russian economy after a year of sanctions
Western media reported on Russia’s success in overcoming the sanctions, nearly a year after they were imposed on the country by the countries of the Western bloc.
“The country’s massive exports of commodities have channeled capital into government and corporate coffers, leading to an unprecedented boom in business investment,” Bloomberg reported on Wednesday.
Businesses large and small have spent on replacing foreign equipment and software or funneled money into building new supply chains to access alternative markets faced with initial forecasts of up to a 20% drop in capital spending, Russia instead saw a 6% increase in 2022.
Bloomberg added, “As Russia tried to overcome the shortage caused by the sanctions, new private companies appeared, and supported many of them with loans or government subsidies”.
Speaking in the State Duma on November 15, Bank of Russia President Elvira Nabiullina declared that inflation in Russia is now not much different from the rate of price growth in similar economies, although the country has experienced larger shocks.
“As a result, our inflation is now not very different from inflation in similar economies, although we have dealt with much larger shocks,” she said.
According to Russia’s Federal Statistics Service (Rosstat), inflation in Russia accelerated in October, to 0.18% after 0.05% in September, and slowed in annual terms to 12.64% from 13.68% in the previous month.
It also confirmed that a large-scale financial crisis in the global economy could be avoided if interest rates were raised by global regulators.