Despite the sanctions and repression of Western countries, the Russian economy appeared 18% year-on-year contraction. However, the year-on-year growth rate of the economy climbed rapidly to 49%, which greatly boosted the confidence of the Russian authorities in development. Against this backdrop, the Russian side raised its economic growth forecast for the whole of 2023 to 25%。Subsequently, the third quarter economic growth exceeded expectations again, reaching 55%, a record high. This series of results has made the Russian sector more confident, so it has raised its economic growth target for the whole of 2023 to 35%。
It is worth noting that despite the outbreak of the Russian-Ukrainian war, this did not have much impact on the Russian economy. Because the destruction of the war is mainly reflected in the destruction of arable land and the bombing of cities, and the current war is not taking place in Russia itself, farmers can work normally, and business orders can continue to produce. In addition, war can also lead to the development of defense-related industries, such as clothing, footwear and socks, steel, machinery, electronics and other industries orders will increase significantly. Such local skirmishes will form a virtuous circle that will increase the employment rate, residents' income, and consumption vitality.
In the process of economic growth, Russia has continuously strengthened industrial transformation and upgrading, developed in the direction of diversification, and increased its autonomy. In the first three quarters of this year, Russia's manufacturing status has been improved, and the energy industry, although affected by the reduction in oil production, has appeared 18% reduction, but the overall economic structure is more diversified.
In terms of manufacturing, the construction industry increased by 10% year-on-year, and the manufacturing industry increased by 9 year-on-year9%。Steel, general machinery and equipment, automobiles, electrical equipment, etc., also showed significant growth. These positive growth sectors have breathed new life into the Russian economy and helped to reduce dependence on traditional energy industries.
In addition, Russia is also actively promoting industrial upgrading, improving its technological level and innovation capabilities. By strengthening scientific and technological research and development and personnel training, Russia's high-tech industry has gradually emerged, providing a new impetus for economic growth.
It can be seen from the re-upward revision of Russia's economic growth target that the Russian economy has continuously strengthened its resilience and adaptability while overcoming external pressures and challenges. Despite sanctions and repression, Russia has achieved a good momentum of economic growth through industrial transformation and upgrading. This not only proves the potential and vitality of the Russian economy, but also shows the correct decisions and effective measures of Russia in terms of economic development.
In addition, the economic impact of war needs to be analyzed on a case-by-case basis. While a large-scale war that spreads to the homeland can lead to a significant economic downturn, local small-scale wars do not necessarily have a serious impact on the economy. In addition, by strengthening the development of defense-related industries, the war can also lead to the growth of other industries, and promote employment and consumption.
To sum up, another upward revision of Russia's economic targets is a positive signal for Russia's economic development. Despite external pressures and challenges, Russia has continuously strengthened its resilience and adaptability through industrial transformation and upgrading, and has achieved good growth in a number of industries. The impact of war on the economy needs to be analyzed on a case-by-case basis, and local small-scale wars can also lead to the growth of other industries. Therefore, the future development of the Russian economy is full of hope and potential.