The International Monetary Fund has been criticized for predicting that Russia's economic growth will be stronger this year than that of the UK or Germany, despite increased pressure from Western sanctions.. But IMF Managing Director Kristalina Georgieva said Russia's economic outlook after 2023 is "

“If we take our forecasts for the medium term, they mean that the Russian economy will shrink by at least 7%,” Georgieva said..

In January, the IMF predicted that the Russian economy would grow by 0.3% this year and 2.1% next. This was much more optimistic than the latest forecasts from the World Bank and the Organization for Economic Co-operation and Development. Economists of these organizations predicted the fall of the Russian economy by 3.3% and 5.6% in 2023, respectively..

Even the Russian central bank, which extended its emergency capital controls for another six months, said gross domestic product could shrink by 1% this year..

Georgieva told CNN that the Russian economy will suffer over time due to the emigration of workers, cutting off access to technology, as well as due to sanctions imposed on Russia's large energy industry..

“This year we thought about how Russia managed to funnel some of [its] oil sales outside the EU markets.. This will not have a lasting impact on the Russian economy,” she added, referring to Russia’s success in diverting oil supplies to China and India..

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After recent EU bans on imports of Russian oil and oil products, Moscow's economy shows signs of strain. On Monday, March 6, the Russian government reported a budget deficit of 2.58 trillion rubles ($34 billion) for January and February, compared to a surplus of 415 billion rubles ($5.5 billion) for the same period in 2022.. Oil and gas revenues fell 46% year-on-year, report says.

Meanwhile, according to Georgieva, the US and European economies have proven remarkably resilient.. She pointed to the strength of labor markets and Europe's swift action to limit dependence on Russian energy..

“All of this has a positive impact on our growth prospects.. We don't see a global recession this year,"

However, this will not stop the global slowdown as central banks continue their campaign to bring inflation down from its highest levels in decades.. IMF expects global economic output, up 3.4% in 2022, to rise 2.9% in 2023.

However, according to Georgieva, it is important that countries do not ease interest rate hikes prematurely in order to avoid a sharp rise in prices..

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