2023-06-06 16:31:00
The World Bank expects a slight recession of the Russian economy this year, according to an improved estimate published on Tuesday by the international financial institution, thanks to the maintenance of energy exports, despite the embargo on oil and natural gas from Russia, reports AFP.
Russian oil field in SiberiaPhoto: DreamsTime / Dyshlyuk
Russia’s Gross Domestic Product is expected to record a slight contraction of 0.2% this year, which represents a significant improvement compared to previous estimates by the World Bank, published in January, according to which the Russian economy would register in 2023 a contraction of 3.3%. However, the World Bank is still more skeptical than the International Monetary Fund, which in mid-April announced that, in the case of Russia, it is counting on economic growth of 0.7% in 2023, notes Agerpres.ro.
New destinations for oil exports
According to the World Bank, the improvement of Russia’s economic situation is due to a “continuous flow of oil and gas exports”, as the country managed to reorient its oil exports to new destinations with an impact on exported volumes”.
Even though exports to Europe fell sharply, according to OECD data taken over by the World Bank, this decrease was largely offset by a strong increase in exports to India and other regions of the world, as well as, to a lesser extent, to China.
This much more modest than previously expected contraction of the Russian economy and a stronger than expected growth of the Chinese economy in January (5.6% against 4.3% initially) support the economic growth expected by the World Bank for emerging countries, and , at a general level, for the world economy.
World Bank Economic Estimates
The World Bank currently expects the world economy to register an advance of 2.1% this year, compared to the 1.7% forecast in January, and next year the rate of growth will accelerate to 2.4%, less than the 2.7% advance initially forecast.
Comparatively, in April, the International Monetary Fund announced that it expects a 2.8% increase in the global Gross Domestic Product this year, and an advance of 3% in 2024.
The World Bank Group, one of the largest sources of financing and expertise for developing countries, is taking swift and complex action to help developing countries strengthen their response to the challenges posed by the pandemic.
Photo: Dreamstime.com
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