Russia's economy expected to grow three times faster than the euro zone

Russia's economy is expected to grow three times faster than the eurozone, according to forecasts by investment firm Amundi (Photo: AP).

Russia's gross domestic product (GDP) will grow by 1.5% in 2024, while the eurozone is expected to grow by just 0.5% next year, according to forecasts by Amundi, Europe's largest fund manager by assets.

"That means the US, Europe, Japan, Australia - the big developed countries - cannot effectively sanction a country. We may hate it, but it is the reality," Amundi's CIO Vincent Mortier said at a press conference in Paris.

Mr. Mortier pointed out that the sanctions had some impact on some Russian individuals and organizations whose assets were frozen, but Russia's import and export activities were hardly affected.

After being cut off from Western markets, Russia has successfully redirected much of its trade flows to its BRICS partners (Brazil, India, China and South Africa) and countries such as Türkiye and Kazakhstan.

"That is the reality that must be accepted. Ultimately, if we look back at the war in Ukraine: Europe has suffered direct and heavy damage, the impact on the US is neutral, but Türkiye, Central Asia and Asia in general have benefited," he added.

Russia has faced unprecedented economic sanctions from the West over the Ukraine conflict, sending its economy into a 2.1% recession by the end of 2022.

However, recent data suggests the country has largely adapted to the sanctions, with the Russian Finance Ministry forecasting 3% growth by the end of this year.

Several international organizations have also recently upgraded their economic forecasts for Russia. The European Commission expects Russia's GDP to grow by 2% this year thanks to "stronger-than-previously expected domestic demand" and to grow by 1.6% in both 2024 and 2025.

Source: https://dantri.com.vn/the-gioi/kinh-te-nga-du-kien-tang-truong-nhanh-gap-3-khu-vuc-dong-euro-20231124202817740.htm