Page 30 - RusRPTJul23

goods was up 8.2%, clothing was up 3.3%, vehicles and equipment up 14.6%, finished metal products climbed 25.3%, electronics and optics grew by 18.7%, and electrical equipment rose 13.4%. Output fell in sectors with no obvious military connections like textiles, tobacco, paper, wood products and mineral fertilisers,” The Bell reports.
Increased industrial activity in the defence sector is also reflected in greenhouse gas emissions. Data from QuantCube Technology, a Paris-based data provider, indicates that emissions from the defence sector have outpaced those from the construction and mechanical engineering sectors.
The rise in military expenditure not only supports the overall economy but also benefits certain groups. Official figures show that real incomes are rising fastest in regions with significant military industries or where there is a high concentration of soldiers. Poor regions that receive increased state support through military and social spending contribute to "social stability." Some experts argue that this has even led to the emergence of a new Russian "middle class," comprising the economic beneficiaries of the war.
Overall, while Russia's economy is experiencing modest growth amidst numerous sanctions, the situation is primarily influenced by the ongoing conflict in Ukraine and the government's military spending.
30 RUSSIA Country Report July 2023 www.intellinews.com