I hope Putin nukes them, that’s only satisfaction I will be able to get from this situation. Like how stupid must they europoorian be to sacrifice their economy for a third world but Mayo country
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Those aren’t inherently good things. Not having debt mostly means not having access to credit, which is dangerous in Russia’s position as they stand before a financial crisis and can’t borrow resources in more stable currencies.
Trade surpluses and deficits also are such low parts of developed country GDPs. A surplus means you’re spending domestic resources in your economy making shit for other countries and not your own in exchange for foreign currency inflows, which can be good in some but not all circumstances.
Tl;dr Russia’s economy is not in a good spot by any means. You can adjust for PPP and they’re still far behind developed and undeveloped economic growth since the 90s or whatever timespan you want to use.
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They ware getting ready for this conflict and ware also building reserves. If they had debts to western countries things could went way worse
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Russia has a tiny per capita sovereign wealth fund compared to other oil-rich countries. Heck, even some STATES in the US have higher oil-funded reserves and that’s a result of low burn rates as opposed to good policy (I.e their govts literally can’t spend the money faster than it comes in for the past few decades). I used to work as an economist in Alaska drawing up their state’s revenue forecasts. It’s something like a $70bn wealth fund across like 600k people. Meanwhile Russia has a bit less than $200bn, but across 150m people, AND that money is already statutorily-dedicated to funding public pensions, so it’s not even a true slush fund that Russia can empty to shore up against sanctions.
They don’t have debts in foreign countries not because their central government made that choice (why would Putin care that an oligarch owed payment on foreign lumber for a development project?), but because neither western nor Central Asian Banks will lend to Russian nationals because of how unreliable the economy is and how poor of control the central government has on its own finance sector.
There’s no amount of hoarding Russia could have done beforehand that’s not going to make this the most painful geoeconomic action that’s been done in the modern era.
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Russia got rid of its debts in 2013 at that time their gdp was higher than Poland why wouldn’t anyone lend them ? Even last year more country’s lend money to Ukraine that was 3 times moor poor than Russia. There are a lot of more poor countries than Russia who are lending money. They also have decent amount of foreign exchange reserves and gold reserves so it really seems that it’s their decision to get rid of debts and not that other countries don’t want to give them money.
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Poland has a 50% higher GDP per capita than Russia. This isn’t everything, since populations and labor resources are importsnt, but to better frame it, the US has nearly twice the population and more than 500% higher GDP per capita.
https://countryeconomy.com/countries/compare/russia/poland
As far as not having debt, I know people bemoan foreign account balances, but wielding national debt is how you project geoeconomic power and survive natural market turbulence. China has 3x its GDP in debt. Japan is around 2x. I could go on and on; what matters far more is the distribution of the debt and it’s comparison to your countries’ income streams. China can handle the debt it has and use it to lift literally hundreds of millions of people out of abject poverty in two generations.
For a lot of reasons Russia has floundered economically and one of the reasons is poor use of international credit. Heck, most of South America wields debt better than Russia and has grown faster as a result despite having far fewer natural advantages that Russia has.
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I was saying in 2013 Russian gdp was higher than Polish one. If debts ware only good that Africa wouldn’t been owned so hard by China.
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Well, it’s not 2013 and hasn’t been for almost a decade, it should also be acknowledged that Eastern Africa is better off on all accounts from Chinese foreign investment. China’s buying influence, but influence isn’t the worst thing to sell when you’re missing a generation from AIDS, malaria and constant sectarian warfare.
Debt is what’s building Africa after more antiquated forms of imperialism stripped it of its natural endowments and hobbled domestic organization.
At current paces, not even accounting for these Russian sanctions to be long-term, Nigeria of all places is going to be wealthier than Russia.
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U know since 2014 Nigeria went from 3000 gdp per capita to 2000. China is going to milk them dry. They are basically giving african country money so they can buy from China expensive infrastructure that they will never be able to pay off and becoming Chinese slaves. So those debts don’t look like they will improve Africa.
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Who would make them slaves? Would China march an army into the capital or claim their oil fields?
Nigeria’s median household income continues to rise, and GDP per capita fluctuations primarily reflect Nigeria’s oil-heavy economy as opposed to actual breakdowns in institutions. Comparing the peak oil prices of 2010 to record lows in 2020 is disingenuous, especially when other oil-heavy countries like Russia see similar tilts: Russia’s peak was $15k/yr per capita in 2013 and was $11k/yr last year, the first year China’s GDP per capita surpassed them.
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Ma'am we've been over this before. You need to stop.
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