Russia’s economy is doing better than weathering the storm of Western sanctions as it benefits from higher energy prices, the IMF said.
Sanctions against RussiaPhoto: Designer49, Dreamstime.com
The sanctions were intended to cut off Russia from the global financial system and cut off funds available to Moscow to finance the war.
But in the latest edition of the International Monetary Fund’s World Economic Outlook report, Russia’s GDP estimate for this year has been upgraded by 2.5 percentage points, although its economy is still expected to contract by 6%.
“It’s still a significant recession in Russia in 2022,” IMF chief economist Pierre-Olivier Gourinchas told AFP news agency.
Russia: Local products are starting to make up for the decline in imports in supermarkets
Products made in Russia account for 83%. In the first half of 2022, the country’s consumer goods market grew by 4% from a year earlier, according to a report released on Tuesday by NielsenIQ, cited by Reuters.
Domestically produced fast-moving consumer goods fill shelves as imports’ market share declines amid Western sanctions against Russia.
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