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FX.co ★ IMF praises Russia for smart anti-crisis measures

IMF praises Russia for smart anti-crisis measures

IMF praises Russia for smart anti-crisis measures

Russia deserved high praise from the International Monetary Fund. IMF managing Director Christine Lagarde made positive comments on efficient economic measures taken by the Russian government to overcome the aftermath of the recession.

Russia’s economy plunged into recession amid global headwinds such as Western sanctions, limited access to international capital markets, and above all a slump in oil prices. Under such tough economic conditions, Russia revealed amazing survival skills. Eventually, since early 2017 the economy has been steadily gaining impetus. “The response by the Russian economy was very comprehensive. They took the right fiscal measures. They kept inflation under control. They adopted a very good monetary policy, which included the floating of the currency, making sure that the financial sector was stable”, the latest IMF World Economic Outlook report reads. IMF experts say that Russia’s economy reversed from GDP contraction to economic growth thanks to a professional and prompt response of the authorities to the negatives. To confirm its high assessment, the IMF upgraded Russia’s GDP forecast for both 2017 and 2018 to 1.4%. In earlier forecasts, they had projected GDP to grow 1.1% in 2017 and 1.2% in 2018.

Importantly, Russia’s economy got vulnerable to external pressures in 2014 when crude oil plummeted suddenly from over $100 to $27 a barrel. Oil is Russia’s major export commodity. Thus, the Russian ruble shed almost 50% following a slump in oil prices.

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