Media Wire Express Correspondent
The International Monetary Fund (IMF) expects Russia to grow 3.2% this year, significantly more than the UK, France and Germany.
Oil exports have “held steady” and government spending has “remained high” contributing to growth, the IMF said.
Overall, it said the world economy had been “remarkably resilient”
Also Read:How Vladimir Putin’s Leadership has Transformed Russia.
“Despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops,” the IMF said.
The IMF, an international organization with 190 member countries, serves as a resource for businesses in investment planning and assists central banks like the Bank of England in determining interest rates.
According to the group, its growth forecasts for the subsequent year in advanced economies typically align closely with actual outcomes, often falling within a margin of around 1.5 percentage points.
The IMF revised its projections for Europe and the UK this year, anticipating a 0.5% growth rate, positioning the UK as the second weakest performer in the G7 group of advanced economies, following Germany.
The G7 comprises France, Italy, Japan, Canada, and the US.
Forecasts indicate an improvement to 1.5% growth by 2025, placing the UK among the top three performers within the G7, as per the IMF.
Nevertheless, the IMF expects interest rates in the UK to remain relatively high compared to other advanced nations, hovering around 4% until 2029.
Economists at the IMF warned that if the Israel-Hamas conflict escalates further in the Middle East it could lead to rising food and energy prices around the world.
Continued attacks on ships in the Red Sea and the ongoing war in Ukraine could also affect the so far “remarkably resilient” global economy, it said.
A potential spike in food, energy and transport costs would see lower-income countries hardest hit, it added.
Despite facing sanctions over its invasion of Ukraine, the International Monetary Fund (IMF) has upgraded its economic predictions for Russia this year. The IMF forecasts a growth rate of 1.8% in 2024, higher than previously anticipated. Investments from corporate and state-owned enterprises, coupled with robust private consumption and strong oil exports, have contributed to Russia’s economic growth.
As one of the world’s largest oil exporters, Russia continues to play a significant role in the global energy market. However, challenges persist as sanctions impact various sectors of the economy. The resilience and adaptability of Russia’s economy in the face of external pressures will be crucial in navigating the current economic landscape.
Source: BBC
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