Bloomberg

Bloomberg

Economists improve their forecasts for this year.

It seems that Russia is moving towards a much shallower recession this year than originally expected, Bloomberg reported citing experts. Soaring oil deliveries softened the impact of American and EU sanctions, they said. According to the publication, economists at JPMorgan Chase, Citigroup and other major banks are reducing their forecasts for this year’s decline in production to as much as 3.5%. Russian experts, some of whom had predicted a decline of as much as 12%, are now revising their forecasts to less than half that. “The boxer moved again after being knocked down,” Anton Tabakh, chief economist at Moscow-based credit rating agency Expert RA, told the paper. “There was a blow, but this was significantly offset by comfortable export prices, even with discounts, and the budget’s ability to spare no money to solve the problem”.The economy is still “facing its worst downturn since at least 2009,” Bloomberg claimed, adding that the government’s “swift moves to stabilize the currency in the first weeks after the war averted a financial crisis and a flood of export earnings followed”. According to seasonally adjusted data from the Development Center of the Moscow Institute of Higher Education, industrial production in Russia increased by 1.7% in May compared to the previous month. “The reversal of the decline in May may be a sign that producers have initially adapted to the shock caused by anti-Russian sanctions,” the center said. Economists pointed out that a boom in oil production, growing domestic demand and a shift towards Asian export buyers gave the Russian economy a big boost. Gas production was another key economic engine fueling revenue growth due to surging prices. “We are not at the stress level we assumed for 2022,” Rosbank economist Evgeny Koshelev told Bloomberg. “We can expect better trends because both budgetary and monetary policy have an overall stimulating effect”.Hardware, software, tests, interesting and colorful news from the IT world by clicking here!

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