Russia’s economy is set to grow by 3.2% in 2024, surpassing advanced economies like the US, according to the IMF. This growth has been driven by high investment and robust private consumption despite the ongoing war. However, the IMF predicts a slowdown in growth in 2025 to 1.8%.
The stronger growth in Russia compared to major developed economies like the US has been attributed to factors such as high investment and strong private consumption. The IMF expects these drivers to diminish in influence by 2025, resulting in a lower growth rate for Russia.
The growth forecast for Russia is significant in the context of Western sanctions imposed in response to the war 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 role in supporting its economy, with high trade volumes and increased energy exports benefiting both countries.
Amid the ongoing conflict and economic pressures, Russia’s economy has shown 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.