Russian President Vladimir Putin.Mikhail Svetlov/Getty ImagesRussia's economy, boosted by military activity, is now classified as high-income by the World Bank.Russia's GDP grew 3.6% in 2023, with trade and financial sectors rebounding.The World Bank also upgraded Bulgaria and Palau, while the West Bank and Gaza were downgraded.Russia's economy has defied sanctions in the two years since Moscow invaded Ukraine in February 2022 — so much so that the World Bank is now classifying Russia as a "high-income country."On Monday, the World Bank announced it has upgraded Russia from an upper-middle-income country to a high-income country, according to a report from the financial institution's economists."Economic activity in Russia was influenced by a large increase in military-related activity in 2023," World Bank economists wrote in their report.Last year, Russians earned $14,250 per person on a gross national income basis.The World Bank's upgrade confirms reports from Russia that suggest the growth is primarily driven by wartime activities that generate demand for military goods and services, making some sectors winners in Russia's wartime economy.Russia's trade jumped by nearly 7% last year, while activities in the financial sector and construction grew by 6.6% and 3.6%, respectively.This boosted Russia's real GDP — which is economic growth adjusted for inflation — by 3.6%.The development has made some poor Russians better off financially, complicating any calculus over how to end the war.The World Bank upgraded seven countries, downgraded West Bank and GazaOther than Russia, the World Bank also upgraded Bulgaria and Palau from upper-middle-income to high-income countries.
Comment on Russia's war-driven economy is so hot that the World Bank upgraded it to a 'high-income country'
htan@insider.com (Huileng Tan), Business Insider
Tue, 07/02/2024 - 9:56pm
Comment On This Story
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more