IMF Concedes that the Russian Economy is Doing Better Than Expected in the face of the Collective West’s Sanctions
Jose Nino
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In a recently published report, Russia’s economy is performing better than expected despite the barrage of sanctions imposed on it by the Collective West after the launch of its special military operation campaign in Ukraine.
This sanctions campaign was designed to effectively deplatform and cancel Russia from the entire liberal economic system and collapse its economy, thus hindering its capacity to carry out its military operation in Ukraine.
Despite these sanctions, the Russian economy appears to be humming along as witnessed by the country’s GDP estimate. According to the International Monetary Fund’s most recent World Economic Outlook published on July 26, 2022, this GDP estimate was upgraded by 2.5%.
The IMF argued that Russia’s economic downturn was not as bad as expected due to “the Russian central bank and the Russian policymakers have been able to stave off a banking panic or financial meltdown when the sanctions were first imposed,” IMF chief economist Pierre-Olivier Gourinchas said to AFP in an interview.
In addition, Gourinchas observed that rising energy prices are “providing an enormous amount of revenues to the Russian economy.”
The IMF report noted, “Russia’s economy is estimated to have contracted during the second quarter by less than previously projected, with crude oil and non-energy exports holding up better than expected.”
The IMF highlighted that Europe is facing major blowback from the sanctions due to its dependence on Russian energy. Press TV reported that the “situation could worsen dramatically if Moscow cuts off gas exports to Europe.”
Russia’s economic overperformance has dealt another blow to the credibility of so-called “experts” who predicted it would collapse. Russia is more than just a gas station with nukes. Unlike the overly financialized economies in the Collective West whose manufacturing bases have been hollowed out, Russia has real resources ranging from gas, agriculture, and minerals to keep it afloat in the face of a full-fledged economic war.
Obviously, Russia will face some stumbling blocks as it restructures its economy and looks more eastward for new markets. Nevertheless, this could prove to be a blessing in disguise given the West’s degraded economic and cultural state.
After each passing day, it’s becoming clearer that the future is looking more Eurasian in nature.
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