In 2024, Russia’s economy is expected to experience growth of 3.2%, surpassing even advanced economies like the US, according to the IMF. This remarkable achievement has been driven by high investment and robust private consumption, despite ongoing conflict. However, the IMF predicts that growth will slow down in 2025 to 1.8%.
The stronger economic performance of Russia compared to major developed economies has been attributed to several factors, including high investment and strong private consumption. The IMF anticipates that these drivers will lose significance by 2025, resulting in a lower growth rate for Russia.
The economic outlook for Russia is significant given Western sanctions imposed on the country in response to the conflict in Ukraine. It challenges the effectiveness of these sanctions and supports Vladimir Putin’s claims that Russia’s economy can withstand such pressures. Additionally, Russia’s alliance with China has played a crucial role in supporting its economy, with high trade volumes and increased energy exports benefiting both countries.
Despite ongoing conflict and economic pressures, Russia’s economy has shown remarkable resilience and a capacity for growth that outpaces major Western economies. This trend is likely to raise questions about the effectiveness of Western sanctions and the impact of broader geopolitical alliances on global economic dynamics.
