IMF Reverses Negative 2023 Forecast for Russian Economy
The Russian economy is projected to grow by 0.3% in 2023, despite setbacks due to unprecedented Western sanctions over the invasion of Ukraine. data released by the International Monetary Fund (IMF) on Monday.
Russia’s economic growth forecast contrasts sharply with the IMF’s 2.3% contraction forecast in October and is an improvement over the 2.2% contraction recorded in 2022 in the sanctions-hit economy.
If the forecast for 2023 is realized, Russia will outpace Germany and the UK, whose economies are projected to grow by 0.1% and contract by 0.6%, respectively.
Compared to the previous October report, the IMF’s latest global economic outlook paints a much brighter picture for the global economy as a whole, which is projected to grow by 2.9% in 2023, compared to an earlier forecast of 2.7%.
But the financial agency also called the potential escalation of the war in Ukraine “a major source of vulnerability, especially for Europe and low-income countries.”
While the European Union has been able to store enough gas to avoid shortages and set lower-than-expected gas prices this winter, the IMF predicts the bloc’s fortunes could change next year as it could struggle to replenish supplies. gas for next winter amid drastic cuts in Russian gas supplies and China’s growing energy needs.
The IMF has warned that a potential failure to renew a UN-brokered Black Sea grain export agreement between Ukraine and Russia could exacerbate food insecurity in low-income countries, fueling social unrest.