The International Monetary Fund (IMF) expects Russia to grow 3.2% this year – significantly more than the comparably advanced economies of UK, France and Germany.
Russia is one of the world’s biggest oil exporters and in February, the BBC revealed millions of barrels of fuel made from Russian oil were still being imported to the UK despite sanctions.
Oil exports have „held steady” and government spending has „remained high” contributing to growth, the IMF said.
„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, expressing surprise at the global economy’s resilience in the face of such conflict.
Despite the repeated sanctions against Russia, the IMF upgraded its January predictions for the Russian economy this year, and said while growth would be lower in 2025, it would be still be higher than previously expected at 1.8%.
Investments from corporate and state owned enterprises and „robustness in private consumption” within Russia had promoted growth alongside strong exports of oil, says Petya Koeva Brooks, deputy director at the IMF.
But 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.
