Russia’s Economy Defies Western Sanctions and Predicts Growth in 2023

2023-07-21 22:01 Compiled by United Daily News Luo Fangyu/Real-time report Russian President Vladimir Putin.Reuters

Russia’s economy has grown despite massive Western sanctions since its invasion of Ukraine last February. Reuters reported last month that Russian President Vladimir Putin said the Russian economy could grow by 2 percent this year. The International Monetary Fund (IMF) predicts that Russia’s economy may grow by 0.7% this year. Vasily Astrov (Vasily Astrov), an expert at the Vienna Institute of International Economics, pointed out two reasons in the report. The Russian arms industry has a large number of orders, industrial production is benefited from defense spending, and real wage growth drives private consumption.

The report pointed out that a large number of young, skilled people emigrated because they did not want to serve in the army, and the lack of labor led to wage growth, which pushed private consumption back to the level before the full-scale invasion of Ukraine in 2021. In addition, the rate of inflation has fallen sharply, and Russia’s inflation rate is expected to be 5.1% this year.

In addition, the British BBC also pointed out that the International Energy Agency (IEA) exported 8.3 million barrels of oil a day, the highest level since April 2020. The largest importers are India and China.

However, in the long run, Estruv is not optimistic about Russia’s economic prospects due to Western sanctions on energy and high technology and labor shortages.

Ukraine Russia Russo-Ukrainian War

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2023-07-21 14:01:48