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The role of war-related industries in Russia's recent economic recovery

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  • Simola, Heli

Abstract

We construct a proxy for Russia's war-related output to evaluate the macroeconomic importance of war-related branches for Russia since the 2022 invasion of Ukraine. Our results suggest that warrelated branches contributed significantly to Russia's economic recovery after the sharp decline of GDP in spring 2022. The largest contribution came from low-tech industries where Russia is less dependent on imports. With war-related branches diverting resources from civilian industries, Russia will find it increasingly difficult to maintain its current level of growth.

Suggested Citation

  • Simola, Heli, 2023. "The role of war-related industries in Russia's recent economic recovery," BOFIT Policy Briefs 16/2023, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitb:280982
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    References listed on IDEAS

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    1. Simola, Heli, 2023. "Latest developments in Russian imports of sanctioned technology products," BOFIT Policy Briefs 15/2023, Bank of Finland Institute for Emerging Economies (BOFIT).
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    Cited by:

    1. Vasily Astrov & Carsten Brockhaus & Julian Hinz & Levke Jessen-Thiesen & Hendrik Mahlkow & Patrik Svab, 2024. "Navigating Trade Restrictions," Russia Monitor 3, The Vienna Institute for International Economic Studies, wiiw.

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    Keywords

    Russia; economy; military industry; sanctions;
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