Russia’s economy ‘in for very tough times’ despite improved growth outlook, IMF managing director says
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The head of the International Monetary Fund (IMF), Kristalina Georgieva, warns that Russia's economy is still facing significant challenges despite an improved growth outlook. The IMF recently raised its forecast for Russia's economic growth from 1.1% to 2.6% for this year. However, Georgieva believes that the forecast figure does not tell the full story. She describes Russia's current production and consumption patterns as resembling those of the Soviet Union, with high levels of production and low levels of consumption. Russian defense spending has increased significantly since the war began, with military spending amounting to roughly 30% of fiscal expenditure. Additionally, more than 800,000 people have left Russia, including highly skilled workers in fields like IT and sciences. Georgieva believes that the outflow of people and reduced access to technology due to sanctions will contribute to tough times for the Russian economy.

#Russia #Economy #Imf #GrowthOutlook #DefenseSpending #Consumption #Production #Sanctions

https://www.cnbc.com/2024/02/12/russias-economy-in-for-very-tough-times-despite-improved-outlook-imf.html