The International Monetary Fund (IMF), has forecasted that Russia’s economy will outpace all advanced economies, including the US, this year.
The IMF anticipates a growth rate of 3.2% for Russia in 2024, significantly surpassing projections for the UK, France, and Germany.
Factors contributing to Russia’s growth include steady oil exports and high government spending, according to the IMF.
Despite facing sanctions over its invasion of Ukraine, the IMF upgraded its predictions for the Russian economy this year, citing investments from corporate and state-owned enterprises, robust private consumption, and strong oil exports.
However, the IMF downgraded growth forecasts for Europe and the UK, with the UK projected to be the second weakest performer in the G7 group of advanced economies, behind Germany.
British Politician and Chancellor of Exchequer, Jeremy Hunt noted the UK’s expected turnaround, highlighting lower predicted inflation and faster growth compared to major European economies.
Economists at the IMF also cautioned about potential threats to the global economy, including escalating conflicts in the Middle East and continued disruptions from incidents such as attacks on ships in the Red Sea and the ongoing war in Ukraine.
They warned that further escalation could lead to rising food, energy, and transport costs, particularly impacting lower-income countries.
Chioma Kalu
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