Russia ‘to grow faster than all major Western economies’

The Russian economy will grow quicker than all of the world’s advanced economies this year, according to the International Monetary Fund (IMF).

In its latest global economic outlook, it forecasts Russia will record economic growth of 3.2 per cent this year, ahead of the United States, France, Germany and Britain.

Despite being hit by severe economic sanctions over its 2022 invasion of Ukraine, steady oil exports and high government spending has bolstered Russia’s economy, the IMF said in its forecast.

Buoyant oil exports have helped the Russian economy power ahead of western economies. (AP)

Looking at the overall world economy, the IMF says it’s 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.

The IMF, a 190-country lending organisation, notes that the global expansion is being powered by unexpectedly strong growth in the US, the world’s largest economy.

Though sharp price increases remain an obstacle across the world, the IMF foresees global inflation tumbling from 6.8 per cent last year to 5.9 per cent this year and 4.5 per cent next year.

The Australian economy is expected to expand by 1.5 per cent this year on a calendar-average basis.

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Apart from the pandemic period, that would be the most sluggish growth since the recession of the early 1990s.

The Reserve Bank of Australia forecasts economic growth to reach 2 per cent next year.

– With Associated Press

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