IMF: Russia's Economy to Grow Faster Than US, Other Advanced Economies Despite International Sanctions Over Ukraine

By Jace Dela Cruz

Apr 17, 2024 07:39 AM EDT

Despite international sanctions over its war in Ukraine, the International Monetary Fund (IMF) has forecasted that the economy of Russia will grow quicker than all of the advanced economies in the world, including the United States, this year. 

TOPSHOT - In this pool photograph distributed by Russia's state agency Sputnik, Russian President and presidential candidate Vladimir Putin meets with his election agents at the Kremlin in Moscow on March 20, 2024.
(Photo : VALERY SHARIFULIN/POOL/AFP via Getty Images)

IMF Says Russia to Grow Faster Than All Advanced Economies

According to the BBC, the IMF forecasts 3.2% growth for Russia this year, surpassing rates predicted for the UK, France, and Germany. 

In its annual World Economic Outlook, the influential global body said the key factors contributing to this growth include stable oil exports and the government's "high" spending.

Despite being sanctioned for invading Ukraine, the IMF upgraded its January forecasts for Russia's economy this year, saying that while growth would be lower next year, it would still be higher than the previously predicted at 1.8%.

Petya Koeva Brooks, deputy director at the IMF, said strong oil exports, corporate and state-owned enterprises' investments, and robust "private consumption" in Russia had contributed to the growth.

Russia is one of the world's leading oil exporters. The BBC reported in February that millions of barrels of fuel made from Russian oil were still being imported to the United Kingdom despite sanctions.

READ NEXT: Russia Could Turn Against Vladimir Putin as Economic Strength Wanes and Western Sanctions Heighten, Economists Warn

IMF Raises Concerns About the US' Spending and Ballooning National Debt

In a related development, the IMF has acknowledged the United States' recent standout performance among advanced economies but expressed concerns about its rampant spending and ballooning national debt, according to Bloomberg.

"The exceptional recent performance of the United States is certainly impressive and a major driver of global growth, but it reflects strong demand factors as well, including a fiscal stance that is out of line with long-term fiscal sustainability," the IMF said.

The IMF warned that "this raises short-term risks to the disinflation process, as well as longer-term fiscal and financial stability risks for the global economy since it risks pushing up global funding costs."

However, despite inflation and ballooning debt, the IMF still projects the US economy to grow by 2.7% in 2024, 0.6% higher from January. The US added 2.7 million jobs last year.

READ MORE: Russia Is Directly Supplying North Korea With Oil Amid Warming Ties, Defying UN Sanctions: Report

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