The IMF estimates Russia's economy will grow faster than the likes of the US, UK and Germany this year.

An influential global body has forecast Russia’s economy will grow faster than all of the world’s advanced economies, including the US, this year.

The International Monetary Fund (IMF) expects Russia to grow 3.2% this year, significantly more than the UK, France and Germany.

Oil exports have “held steady” and government spending has “remained high” contributing to growth, the IMF said.

Overall, it said the world economy had been “remarkably resilient”

“Despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops,” the IMF said.

  • Buffalox@lemmy.worldEnglish
    0·
    8 months ago

    Russia is keeping the economy going by burning money on the war.
    Maybe 3.2% growth is a bit better than expected, but investments can’t be good with high National Bank interest rates, and AFAIK inflation is still hurting consumers in Russia. Consumer spending remains high, mostly because essentials is a high share of consumption.

    Just because Russia has decent economic growth on paper, doesn’t mean the economy is actually good or healthy if it’s based on deficits.

    • Linkerbaan@lemmy.worldEnglish
      01·
      8 months ago

      Russia is keeping the economy going by burning money on the war.

      The only way one can make money from a war is by selling weapons to others and not fighting it yourself. How can making explosives and throwing them away produce anything of value for their own economy?

      • Buffalox@lemmy.worldEnglish
        0·
        8 months ago

        The only way one can make money from a war is by selling weapons

        Increasing the economy does not mean they make money, in this case it’s rather that they spend money.
        When the government pump money into weapons production and other military spending, that increases the economy immediately, then people get paid and buy other stuff.
        In general government spending increases the economy.

        • Linkerbaan@lemmy.worldEnglish
          01·
          8 months ago

          But that money has to come from somewhere. Money printer go brrrr means massive inflation

          • fine_sandy_bottom@discuss.tchncs.deEnglish
            0·
            8 months ago

            That’s pretty old school thinking.

            As though your village only has so many carrots so giving everyone twice as much money means carrots will cost twice as much.

            These days the thinking is, if everyone has a little money then more people will grow more carrots to sell.

            The extra money floating around motivates people to produce value in order to win some of that cheddar.

            Of course, this only works up to a point.

            • Linkerbaan@lemmy.worldEnglish
              01·
              8 months ago

              Of course, this only works up to a point.

              Ah yes I recognize this economic model.