IMF upgrades Russian economy forecast

The fund expects 0.3% growth in 2023, having previously predicted a contraction

IMF upgrades Russian economy forecast

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The International Monetary Fund has revised upwards its estimate of Russian economic development, projecting GDP to grow by 0.3% this year, and 2.1% in 2024.

According to the fund’s World Economic Outlook update published on Monday, Russia’s GDP fell by 2.2% last year. In its October forecast, the IMF reported that the decline was expected to be 3.4%. For this year, the fund previously predicted a drop of 2.3%, and for 2024, a 2.1% decline.

The IMF’s estimates are beginning to converge with Russian forecasts, the press service of the Ministry of Economic Development told RBK business daily following the release of the report.

“Indeed, the Russian economy is confidently overcoming the sanctions barriers of unfriendly countries. In 2023, further economic recovery will depend on the improvement of consumer demand, as well as measures to ensure the growth of corporate and consumer lending,” the ministry stated.

READ MORE: Russian economy doing much better than expected – Putin

Earlier this month, President Vladimir Putin stated that the Russian economy is in better shape than previously expected, and is on course for further stabilization. He added that the Western sanctions and international pressure have failed to seriously harm the economy, and the results have shown this.

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