Russia is undergoing 'reverse industrialization' as limited resources force a retreat from high tech

[Yo_Mama_Been_Loggin]

Russia is experiencing "reverse industrialization" as Western sanctions and its continued war on Ukraine weigh on long-term economic growth prospects, Finland's central bank said.

While 2022 saw Russia hit with a "financial shock, a trade shock, and an uncertainty shock," its GDP proved more resilient than expected, only contracting by 2.1%, Laura Solanko, a senior advisor for the Bank of Finland, wrote in a recent blog post.

But sanctions continue to weigh on the economy, she added, so businesses have switched to inferior or pricier inputs, with some shifting from high-tech to low-tech.

As a result, the Russian economy has been experiencing a structural transformation to become more self-sufficient and state-controlled, according to the blog post. The Kremlin has had to find import substitutions and stray from partners that the government deems as "unfriendly countries," which represent more than 50% of the global economy.

https://www.msn.com/en-us/money/markets/russia-is-undergoing-reverse-industrialization-as-limited-resources-force-a-retreat-from-high-tech-industries-finland-s-central-bank-says/ar-AA19njL5

[yaesu]

1. It's reverting back to cold war standards, long lines for dwindling products. nt

[erronis]

2. Unfortunately, no matter how quickly Putin leaves the scene, the Russian economy will be hurting

for a very long time.

With Putin gone, outside investors might look at re-establishing some relationships. But unless the whole oligarchic framework is dismantled and good regulations are put in place, no one will trust that country.

For decades the west has tried to get westernized information available to the common people in Russia so they could make some informed decisions. I'm not sure the ROI has been even marginally positive.