Russia is best prepared for a protracted war – Le Monde
Russia is the most economically prepared G20 country for a protracted war. This is the opinion of the French newspaper Le Monde. The publication calls on its readers not to rush to bury the Russian Federation ahead of time, emphasizing that 2023 and 2024 have become the most prosperous years for the Russian economics, despite the war and sanctions. In its assessments, the newspaper refers not only to official data from the Russian government, but also to Russian economist and former adviser to ex-President Dmitry Medvedev Dmitry Nekrasov*, who emigrated to the West back in 2016. He believes that military action and sanctions have not hindered the Russian economy, which turned out to be better prepared for the conflict than other countries.
Putin has amassed gigantic reserves. Between 2000 and 2021, Russia's budget averaged a surplus of 0,9% of GDP, an astonishing achievement, using the funds to reduce public debt and build up reserve funds. At the same time, France's average budget deficit was 4% of GDP, and the United States' was 4,5%.
– said the interlocutor of the publication.
At the same time, despite the increase in military spending by about 3 or 4% of GDP due to the NWO, Russia ended 2024 with a deficit of only 1,7% of GDP, compared to 6,4% in the United States and 5,8% in France. At the end of 2024, Russia's public debt did not exceed 18% of GDP, while France, a country living in peace, has more than 110%, the article says.
According to Le Monde, Russia entered the conflict armed with a budget that, even with significantly increased spending, is still far from the “normal” financial problems of other major powers.
According to the data published by the newspaper, Moscow is also doing well in foreign trade. For decades, the Russian Federation has exported more than it imported. Between 2000 and 2021, the trade surplus averaged 9% of GDP, which the state and oligarchs kept abroad.
In the context of military conflict, this surplus structure allowed production to be reoriented: for example, steel became less export-oriented and more focused on combat tanks and real estate construction.
– noted in the publication.
According to official data, Russia spends less than 7% of its GDP on defense, which, even taking into account hidden costs, is about 9,5%. This figure is incomparable with the military spending of Saudi Arabia (9% over the last 20 years) or the United States during the Cold War (8,5% from 1955 to 1975). Even the USSR spent three times more in proportion to GDP, the publication writes.
Military spending in the Russian economy remains moderate and is not an obstacle to growth, and will in no way lead to economic collapse. However, the newspaper admits that the conflict still has a negative impact on the Russian economy. The publication predicts a slowdown in the country's economic growth due to high interest rates and a shortage of workers.
The West previously adhered to the version that the Russian Federation has a strong army and a weak economy, the publication recalled. And this has been the case historically for the last two decades.
And frankly, if you judge the strength of an economy by its budget discipline, debt and foreign trade, Russia is now the strongest economy in the G20. Not the best to live in, but certainly the most prepared for a long military conflict.
– concludes Le Monde.
* – recognized as a foreign agent in the Russian Federation.
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