Treasury report reveals: Russia's economy could grow by five percent if war with Ukraine ends

Treasury report reveals: Russia's economy could grow by five percent if war with Ukraine ends

According to a report by www.businessinsider.de,

The US Treasury Department has published a report looking at the Russian economy. They were able to deduce that Russia's gross domestic product (GDP) could be five percent larger if the country did not wage war against Ukraine. In addition, other sectors of the economy are also affected by the war.

The impact of this situation on the market and the financial industry can be significant. The $100 billion investment in the military sector and high military spending could lead to a weakening of other sectors of the economy. Planned public sector wage increases have been halted while inflation in the country is at 7.5 percent, well above the central bank's target. In addition, there is a historically high number of emigrants, which could further weaken the country's growth potential.

The report shows that the economic impact of the war on Russia is significant. Reliance on external sources to supply the military and continue the war makes Russia even more isolated and further weakens the economy. These factors could lead to a long-term weakening of the Russian economy and thus the financial market. It is important to keep an eye on these developments and analyze their impact on the global market.