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World Bank Upgrades Outlook for Russian Economy on Strong Energy Exports

In its half-yearly report on the world economy, the World Bank has made a significant upgrade to the outlook for the Russian economy.

World Bank Upgrades Outlook for Russian Economy on Strong Energy Exports

The bank attributes this positive revision to higher-than-expected revenues generated from energy exports, particularly to countries like India and China. Despite facing stringent economic sanctions imposed by the European Union, the United States, and other nations following its invasion of Ukraine, Russia managed to mitigate the decline in oil and gas exports to sanctioned countries by increasing its exports to alternative markets.

Previously, the World Bank had forecasted a more severe economic contraction for Russia. However, the updated projection indicates that the Russian economy will now experience a marginal contraction of only 0.2 percentage points in 2023. This revised forecast is notably higher than the bank's previous estimate from January, reflecting a more positive outlook for the country's economic performance.

The International Monetary Fund (IMF) also revised its short-term growth forecasts for Russia in April, aligning with the World Bank's more optimistic outlook. Furthermore, the World Bank raised its global growth forecast for the current year to 2.1 percent, highlighting significant forecast upgrades for China and, to a lesser extent, Russia as contributing factors to the improved global economic outlook.


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