Russia's economy will grow faster than Western countries by 2024

The International Monetary Fund's economic report on April 16 estimated that Russia's wartime economy could grow by about 3.2% in 2024. This is a growth rate far exceeding the forecasts in developed economies such as the US (2.7%), Germany (0.2%), UK (0.5%) and Japan (0.9%).

IMF experts say Russia’s remarkable economic growth will be driven largely by “high investment” during the war and “strong private consumption.” Increased consumption is also a result of the war, as the shrinking labor market has pushed wages to become more competitive. The IMF predicts that these dynamics will cool in 2025, but the Russian economy is still expected to grow by 1.8 percent then.

Russian President Vladimir Putin

Since the outbreak of war in Ukraine, many financial and trade embargoes and sanctions have been launched by the US, the European Union (EU) and their allies against Russia, typically banning oil and gas imports, banning technology exports, freezing assets or removing Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

Russia has taken many intermediary measures to circumvent oil import limits in G7 member countries. Moscow also collected about 387 million USD from companies "boycotting" the Russian market, through requests for partners to compensate for contracts or liquidate assets before withdrawing from Russia.

On the other hand, Russia also maintains oil and commodity exports to two strategic markets, India and China. In 2023 alone, two-way trade turnover between Russia and China reached a record of 240 billion USD.

According to Business Insider, the IMF's forecast has rung a bell for Western countries that still hold out hope that Russia will succumb to the economic siege on the country. A growth rate of 3.2% after two years of war will strengthen President Vladimir Putin's reputation, and prove that Russia has successfully neutralized the West's grip, according to the news site.

Source link: https://thanhnien.vn/imf-kinh-te-nga-se-tang-truong-vuot-bac-phuong-tay-185240418194113132.htm