According to the Financial Times, the Russian economy performed better than many anticipated despite the exceptional sanctions, which are the toughest to date.
The publication claims that the Central Bank of Russia’s quick steps in enforcing capital controls and raising interest rates led to the stability of the ruble exchange rate.
The article claims that despite the severity of the sanctions, Russia was nevertheless able to participate in the military war in Ukraine.
The publication claims that the rise in oil prices worldwide and the expansion of oil sales to countries like China, India, and Turkey have helped to make up for the decline in exports to the European Union.
Given the severity of the sanctions, the Russian Central Bank projects a 4-6% decline in GDP this year, which cannot be characterised as catastrophic.
In addition, the IMF now forecasts a 6% decline in Russian GDP, down from earlier forecasts of an 8.5% decline and higher rates.
The newspaper continued by stating that Europeans are less used to enduring suffering and hardships than their Russian counterparts, and are more likely and willing to take to the streets and express their life and economic problems in the squares, highlighting how challenging their current situation is as they deal with historically high heating costs.
Additionally, the International Monetary Fund warned last month that it anticipates the Russian economy to be little affected by Western sanctions this year, whereas European countries will suffer more than anticipated.
On the other hand, the International Monetary Fund claimed that the effects on significant European economies were worse than anticipated.
Western nations imposed severe sanctions on Russia on February 24 in response to Moscow’s military action in Ukraine in an effort to financially and economically bind Moscow.
According to the Financial Times, the Russian economy is resilient and its fighting spirit has not diminished.
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