Hacker News new | ask | show | jobs
by belter 858 days ago
> Russia is already under increasingly crippling sanctions

You are surely joking...

"IMF raises Russia growth outlook as war boosts economy - New 2024 forecast of 2.6% rise doubles previous prediction and prompts questions over sanctions against Moscow" - https://www.ft.com/content/21a5be9c-afaa-495f-b7af-cf9370931...

2 comments

It's a war economy. Russia builds a lot of tanks, mans a large army, pays a lot to the families of the fallen, it all adds a lot to the GDP.

But those tanks are going to burn, they don't add value to the economy, won't be exchanged for foreign goods. If you dig a hole into the ground, you increase the GDP, war destruction is not much different in its value creation. GDP is not a perfect measure of an economy.

> GDP is not a perfect measure of an economy.

An often-used example of this is the crash of oil tanker Exxon Valdez, which in terms of GDP is one of the most productive sea voyages of all time.

A) Russia is large enough that it doesn't really need foreign trade to have an economy B) We -- ie "the west" have no control over what India and China does wrt russia. If they keep buying Russian oil, we can't stop them.
West can't even stop it's banks from servicing Russia financial transactions or actually ban sales of heavy machinery that used to produce weapons...