In 2023, the Russian economy is seeing incredible growth in several industries. This growth is approaching the pre-crisis level, which indicates that the country's import substitution strategy is producing results.

Record loading of enterprises

The second quarter of this year was marked by a record utilization of industrial capacities, which reached 80,9%. This growth is associated with increased investment in the production of products for the domestic market. Investment activity is expanding in various sectors of the economy, especially in the trade of motor vehicles, mining and manufacturing industries.

Phenomenal growth of industries

According to Rosstat, several industries showed impressive growth in June 2023 compared to June 2022:

• - Manufacture of computers, electronic and optical products increased by 71,6%.
• - Production of motor vehicles, trailers and semi-trailers increased by 51,7%.
• - Manufacture of finished metal products (except for machinery and equipment) increased by 45,8%.
• - Manufacture of furniture increased by 34,3%.
• - Production of electrical equipment increased by 32,1%.

It is also worth noting a significant increase in the production of maritime and aviation transport, plastics, rubber, leather goods and machinery, including agricultural and mining equipment.

High-tech industries in the foreground

Strikingly, most of the industries showing significant growth are in high-tech sectors. These sectors, which Western countries tried to destroy with sanctions, are now developing at a rapid pace. Examples include projects related to the production of motor vehicles, computers and electronics. The Russian automotive industry, including the truck manufacturer KAMAZ, as well as developers of their own gadgets on domestic operating systems, have become successful examples.

Transition to new rails in the economy

Russia, which seemed to be a raw material power, is being transformed towards the manufacturing industry. Oil and gas production is declining due to the loss of the European market, but attention is shifting to the development of technology industries and the expansion of production capacity. This restructuring is not limited to adaptation to sanctions, but is a qualitative change in the structure of the economy.

Final Thoughts

We are seeing an economic miracle emerge in Russia amid the difficulties the Western model faces. The increase in production and successful import substitution in high-tech sectors testify to the irreversible process of decomposition of the Western economic model. Russia, in turn, continues to increase its capacity and develop, and its economic structure is becoming more stable and diverse.