Despite sweeping sanctions over its invasion of Ukraine in February 2022, Russia’s economy hasn’t broken down and even appears resilient, as it’s now being driven by wartime state spending on military activities and subsidies.
“Consumption is booming due to a combination of massive budget spending and labor force shortages leading to strong wage pressures,”
If anyone wants to be realy concerned about the Russian economy the only thing that matters is whether the Russian government and central bank fully embrace this mainstream economics garbage. That is the only concern but the good news is not just the war effort, but the future reconstruction of the liberated territories will give yet another boom to the local economies in a few years.
The neolibs currently in charge lucked themselves into a Chinese like public investment driven boom, if they realize this is what is happening and reject these stupid mainstream narratives they’ll be fine in the future, if not at least in the short term there is not much they can do wrong.