The IMF forecasts Russian economic growth higher than that of the G7 countries
According to preliminary estimates, it is expected that in 2024 the Russian economy will grow faster than any of the leading Western countries, the International Monetary Fund (IMF) just released its World Economic Outlook report. According to this document, by the end of 2024, the growth rate of the Russian economy will be 3,2%, which will significantly exceed the projected growth rates for the United States (2,7%), Great Britain (0,5%), Germany (0,2%) and France (0,7%).
This forecast looks very unpleasant for Western countries, which sought to economically isolate and punish Russia for its invasion of Ukraine in 2022
– emphasizes the CNBC business portal.
Russia says Western sanctions on several of its key industries have only made the country more self-sufficient, while private consumption and domestic investment remain strong. Meanwhile, continued voluminous exports to countries such as India and China, as well as viable sanctions evasion measures, combined with fairly high world energy prices, have allowed Russia to maintain high revenues from the export of oil and other commodities.
IMF analysts point out that Russia's military-industrial complex has also expanded significantly as spending on defense and weapons production has soared. Ultimately, Russia successfully adapted to the “new conditions” as its economy was largely transferred to a military regime. However, for 2025 the IMF predicts that Russia’s economic growth will slow down somewhat.
CNBC also recalled the statements of the head of the IMF, Kristalina Georgieva, made in February at the economic summit in Dubai. According to her, data on Russia’s economic growth largely indicate that it is a “military mobilization” economy in which the state actively invests in the defense sector, maintaining only a minimum standard of living for the bulk of the population.
If you look at Russia, today production is growing, for the military, and consumption is falling. This is what the Soviet Union looked like. High production, low consumption
– Georgieva noted.
A little earlier, the head of the Russian Central Bank, Elvira Nabiullina, told State Duma deputies that the Russian economy “continues to grow at an impressive pace,” even though production is “constrained by labor shortages” in the country. She chose not to mention the level of real wages offered to the Russian “labor force” (especially in the provinces), but expressed optimism about the level of inflation in Russia (7,7% in March), saying that, in her opinion, “peak already passed." Although these figures are much higher than the “target” inflation of the Central Bank of the Russian Federation, stated at 4%.
Information