(PLO)- In its World Economic Outlook released earlier this week, the International Monetary Fund (IMF) revised up its forecast for Russia’s economic growth.
Specifically, Russia’s GDP growth is predicted by the IMF to increase by 0.3% this year and 2.1% in 2024, according to the news agency. RT. In October 2022, the IMF predicted that Russia’s GDP would shrink by 2.3% in 2023 and 2.1% in 2024. As noted by the IMF in its latest report, Russia’s GDP fell by 2.2% in last year, lower than the 3.4% decline forecast by the IMF in October 2022.
If the IMF’s forecast comes true in 2023, Russia’s growth will surpass that of Germany and the UK, whose economies are forecast to grow by 0.1% and 0.6 percent respectively, according to the report. The Moscow Times.
Theo RT, the IMF estimates are beginning to converge with the Russian projections. Russian Economic Development assessed: “The Russian economy is confidently breaking through the sanctions barrier of unfriendly countries. In 2023, the economy will recover further, depending on the improvement of consumer demand, as well as measures to ensure the growth of business and consumer loans.
The Independent quoted financial analyst and chief investment officer Santa Zvaigzne-Sproge at financial services firm Conotoxia (Cyprus) that “in terms of sanctions, the immediate impact on the financial sector is And Russia’s military doesn’t seem to be as strong as the West would expect.” According to her, Russia has found a new market for oil and gas, while the UK as well as the European Union (EU) countries are still suffering from raging inflation.
Oil tanker RN Polaris and an aircraft carrier leave in Nakhodka Bay near the port city of Nakhodka (Russia) December 4, 2022. Photo: REUTERS
At the current G7 oil price ceiling, Russia’s crude oil exports are not expected to be significantly affected, Russia’s trade continues to be diverted from sanctioned countries to other countries, the IMF said. the country is not punished”.
However, according to Dr. Margaryta Klymak, who teaches economics at Oxford University (UK), there is “evidence” that Russia has been affected by sanctions.
“There have been negative impacts on the Russian financial sector, reducing imports (especially high-tech products) and exports, as well as FDI (foreign direct investment) flows,” said Dr. Klymak. outside) net is recorded as negative”. She predicts the negative impact from sanctions may not be rapid, but will increase over time.
Sanctions and export controls have cut off Russia’s access to key technologies and public inputs, according to Fred Winchar CEO of financial brokerage Max Cash (USA). necessary for the country’s military operations.
IMF hints at policy priorities to maximize growth 2023
(PLO)- In the latest forecast for the world economy, besides being optimistic about escaping the risk of recession, the IMF also made a number of policy priorities to maximize economic growth this year.