(no title)
DoughnutHole | 1 year ago
More recent examples include the both sides of the Iran-Iraq war and Armenia in its war with Azerbaijan.
GDP has implications for the productivity of an economy and the budget of the government.
41% of Russia’s government spending at the minute is on the war which means they have to either cut spending on other things weakening the state or drive massive debt and inflation.
There’s a reason you can only run a war economy for so long - eventually you win the war or bleed your economy dry. Russia’s had the advantage of huge legacy reserves of equipment from the USSR days and a larger population. We’ll see how long they can last tapping the well.
No comments yet.