Russia's economy is at pre-war levels in nearly all sectors, as sanctions fail

Sanctions or no sanctions, it is clear that Russia's economy has recovered. Trade turnover at Russian ports is approaching pre-war levels, with GDP growing by 4.9% in the second quarter of this year. In addition, the Russian automotive industry is also starting to return to 2021 levels.

The volume of goods unloaded at Russia's three largest container ports is surprisingly high and approaching pre-war levels, according to a recent report by the Kiel Institute for the World Economy, a German research institute.

Activity in Russian ports is surprisingly high. For the first time since the eruption of the Ukraine war, the volume of goods unloaded at Russia's three largest container ports, St. Petersburg, Vladivostok, and Novorossiysk, is approaching levels seen at the onset of the war,

− the analysis says. One reason why the punitive measures haven't produced the expected impact is because Russia has transformed its trade and economy almost instantaneously, easily rejoining the world trade through third countries, such as Kazakhstan and Turkey. "It is not clear from the movements of container ships where the goods are coming from, but it appears that Russia is re-engaging in global trade," the document says.

GDP growth, strengthening rouble

As Magyar Nemzet has highlighted in a previous article, Russia's GDP grew significantly in the second quarter of this year, following a decline in the first quarter.

According to revised, but not yet final data released by Russia's Federal Service for State Statistics, the country's gross domestic product (GDP) grew by 4.9 percent year-on-year in the second quarter, after falling by 1.8 percent in the first quarter. Compared to the first quarter of this year, GDP grew by 8.6 percent. The surge in military orders also contributed strongly to the economy's growth.

Looking ahead, it is clear that the country's current account balance will recover, imports of goods and services will fall slightly by the end of the year, while exports will grow strongly as oil prices have risen sharply, Russian presidential aide Maksim Oreskin told the Eastern Economic Forum in Vladivostok on Monday. He added that the recovery would lead to an improvement in the current account balance, and that decisions taken by Russia's Central Bank would curb capital outflows from the country.

The weakening of the ruble is probably past its peak, all in all, and now a strengthening is expected, Mr Oreskin explained.

Car industry's also booming

After it became clear that Moscow is standing up to Western sanctions, car sales figures have soared, according a piece published by our paper. Statistics published on the Russian Green Way website show that the increase for this August was 49 percent, with nearly 70,000 vehicles sold across Russia this month alone. In 2022, the Russian car market witnessed a decline of more than 50 percent compared to the previous year, as registered new car sales stood at 687 370 last year, compared to 1 666 780 in 2021.

Cover photo: Illustration (Photo: Pixabay)