Washington - Saba:
The Russian economy managed to withstand Western sanctions mainly due to its large foreign exchange reserves and floating exchange rate system, according to a new external sector assessment prepared by the International Monetary Fund.
According to the report, as quoted by the Russian news agency "Sputnik": "Russia's large foreign exchange reserves and floating exchange rate system continue to help absorb shocks. The remaining capital controls have also helped limit capital outflows and contributed to preserving reserves despite the sanctions."
The assessment noted a slight increase in the volume of capital outflows, rising from 2.0% of GDP in 2023 to 2.4% in 2024.
Julie Kozack, Director of Communications at the International Monetary Fund, had stated earlier in July that the Fund may lower its growth forecast for the Russian economy for 2025, in the upcoming World Economic Outlook report to be released later this month.
The Fund had previously projected in April that the growth of the Russian economy would slow to 1.5% in 2025.
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