Nikolai Kulbaka on how Russia’s budget deficit is planned to be addressed, whether to trust Russian official statistics and why nominal GDP growth does not mean a healthy national economy.

Summary:

  • The Russian government will further cut spending on health care, education and culture.

  • More efficient private investment is being replaced by inefficient public spending while consumer spending is falling.

  • The opaqueness of Russian statistics is already hurting government policymaking. It is practically impossible for financial sector officials to make the right decisions without good statistics.

  • Instead of investing in new, efficient production facilities, the military-industrial complex is spending most of its money on duplicating and repairing long-obsolete defense products. New designs have been shelved. As have long-term infrastructure projects. So, the biggest losses for Russia are still ahead.

  • Ильдар@lemmy.world
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    1 year ago

    “In Russia, everything changes in 10 years, but nothing changes in 100 years.” Well-known quote in Russia