Russian economy grows again

Russia 's economy will continue to grow despite sanctions thanks to higher-than-expected energy revenues, according to the World Bank's latest Global Economic Prospects report on June 6.

The country's growth rate is expected to turn positive in 2024, albeit at a modest 1.2%.

Russia's economy is on the rise again. (Illustration: Getty)

“This change mainly reflects the unexpected resilience of oil production and higher-than-expected growth momentum from 2022,” the report said.

According to World Bank experts, in the face of Western sanctions, Moscow changed its oil export destinations “without significant differences in export volumes.”

However, the Washington DC-based organization warned that declining export volumes and weak domestic demand would affect Russia's performance.

The Russian government meanwhile maintains a positive outlook for the economy. Prime Minister Mikhail Mishustin predicts that by 2024, the Russian economy will be able to surpass developed countries in terms of growth rate.

The World Bank also raised its outlook for global growth in 2023 — with the US, China and other major economies proving more resilient than expected. But it warned that higher interest rates and tighter credit could weigh on next year’s readings.

Global GDP is forecast to grow 2.1% this year, down from an earlier projection of 1.7%. But that is still well below the 3.1% growth rate in 2022. The World Bank previously cut its 2024 global growth forecast to 2.4% from 2.7%, citing tightening monetary policy by central banks.

Additionally, two-thirds of developing economies will see lower growth this year than in 2022, according to World Bank Chief Economist Indermit Gill.

“Even by the end of next year, a third of the developing world will not have surpassed the per capita income level they had at the end of 2019. That is a lost five years (2020-2024) for almost a third of the world's countries,” Gill told reporters.

Phuong Anh (Source: RT)

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Source: https://vtc.vn/ngan-hang-the-gioi-kinh-te-nga-tang-truong-tro-lai-ar798181.html