According to the IMF forecast, Russia’s GDP will contract 6% in 2022, down from the 8.5% forecast in April. “Russia’s economy is estimated to have contracted less than previously projected in the second quarter, and exports of crude oil and non-energy products held up better than expected,” the agency said.
The report explains the reasons for the performance of the Putin government’s economy: “Domestic demand is also showing some resilience”they indicated, due to the efforts to contain the effect of the sanctions in the national financial sector and that the labor market has weakened less than expected, added the IMF.
Western countries, since the beginning of the Russian invasion of Ukraine on February 24, have imposed a battery of sanctions against Russia, with the intention of strangling it financially and economically. Despite this, they did not achieve their goal, since Vladimir Putin’s government continues with the development of its economic plan.
The effects will be felt more than expected in 2023year for which the IMF predicts a recession in the Russian economy 3.5%. On the other hand, “the effects of the war on the main European economies have been more negative than expected,” the IMF said.
Likewise, the IMF showed a discouraging panorama in its report for powerful countries of the European community, such as Germany (-0.9 percentage points to 1.2%), France (-0.6 to 2.3%) and Spain (-0.8 percentage points to 4.0%).
This is due to “higher energy prices, as well as declining consumer confidence and slowing manufacturing activity as a result of ongoing supply chain disruptions and rising raw material costs.” premiums,” detailed the IMF.
And a complete halt to Russian gas exports would “significantly” reduce growth in the euro zone in 2022 and 2023, forcing European countries to ration energy, hitting major industrial sectors.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
