International Monetary Fund (IMF) released a new issue of the " World Economic Outlook Report " on the 11th, saying that due to the relatively stable oil exports and domestic demand, Russia's economic contraction was not as serious as expected. "The contraction of Russia's economy is not as severe as previously expected, reflecting the resilience of Russian oil exports and domestic demand with the support of stronger fiscal and monetary policy."
On August 22, people lined up in Moscow, Russia to enter a "Star Coffee" store. Xinhua News Agency (photo by Alexander)
The International Monetary Fund said that the Russian economy shrank by 21.8% at an annualized rate in the second quarter of this year, while it is expected to shrink only 3.4% for the whole year. In June, the organization predicted that Russia's economy would shrink by 6% throughout the year.
Russian President Vladimir Putin said in September that Russia's economic situation has gradually "normalized", with the unemployment rate falling to 3.8%, the lowest level in history, and the annual inflation rate has dropped to 13.7%, far lower than when many Western sanctions against Russia began to work this spring. According to Putin , the worst situation has passed.
After Russia launched a special military operation against Ukraine on February 24, European Union and the United States imposed severe economic sanctions on Russia, including seeking to get rid of its dependence on Russian oil and natural gas , but it has caused tight energy supply in Europe and soaring prices.
According to AFP analysis, the new issue of the World Economic Outlook Report supports the Russian government's view on its own economy to some extent. Although Russia's economy may face long-term challenges, its energy exports seem to be helping Russia survive Western sanctions.
On June 29, in Moscow, the capital of Russia, pedestrians passed the exchange rate display of a foreign exchange exchange point. Russian ruble exchange rate against the US dollar and euro continued to strengthen on the 28th, reaching its highest level in seven years. Photo by Xinhua News Agency reporter Bai Xueqi
Data from the Russian Ministry of Finance shows that in the first eight months of this year, more than 40% of the Russian Federation's fiscal revenue came from the oil and gas industry.
International Financial Association Vice President Elina Ribakova told AFP: "We can think that the impact of the first few rounds of sanctions (on Russia) has passed, especially in the financial field."
Organization of Petroleum Exporting Countries ( OPEC ) and non-OPEC oil-producing countries decided to cut production sharply from November this year. This decision is expected to continue to push up oil prices, so it is welcomed by the Russian government. US media disclosed on the 11th that the White House had asked Saudi Arabia to suspend its decision to support major oil-producing countries to significantly reduce oil production, but the latter "brightly" rejected it.
AFP analyzed that given that it is difficult for G7 to reach an agreement on the "price limit" measures for Russian oil exports and it is difficult to get a response from other countries, Russia's economic outlook seems to be improving. According to the new forecast of the International Monetary Fund, Russia's economy will shrink by 2.3% next year, lower than the 3.5% forecast in July.
(Original title: The International Monetary Fund says that Russia's economic situation is not as serious as expected)
Source: Xinhua News Agency
Process Editor: TF060
