Russia reports good news on imports, despite Western sanctions; Moscow's economy grows strongly

Russia's import activity recovered in the third quarter of this year thanks to increased domestic demand, the Central Bank of Russia said on October 17, despite Western sanctions causing difficulties in international payments.

WB sharply increases growth forecast for Russian economy. Exterior view of Moscow International Trade Center in Moscow, Russia. (Source: AFP)

According to the balance of payments report from the above bank, the value of imported goods in the third quarter of 2024 reached 76 billion USD, equal to the same period last year and increased by about 9% compared to the second quarter.

In the previous three quarters, Russia's imports fell year-on-year.

The main driver of this recovery is rising domestic demand, combined with the appreciation of the ruble, as well as an increase in imported cars, the bank said.

According to the report, against the USD, the Ruble increased by 5% compared to the previous year and increased by 2% compared to the second quarter of 2024.

However, the Russian Central Bank also admitted that the country's import activities are still facing many challenges, especially problems in logistics and international payments.

Russian businesses are facing increasing difficulties in making payments after the US stepped up pressure on banks in Moscow's key trading partners by threatening secondary sanctions.

* The World Bank (WB) has also recently increased its growth forecast for the Russian economy. Accordingly, it is expected that the country's Gross Domestic Product (GDP) will grow by 3.2% this year. This figure is a sharp increase compared to the WB's previous forecast of 2.9%.

“Growth remains well above potential due to upbeat consumer sentiment, higher real incomes and a significant increase in government spending, including on defense and infrastructure,” the World Bank said.

Russian Finance Minister Anton Siluanov also said that the country's economy is growing at a faster pace than expected, with GDP expected to jump 3.9% this year.

Rising investment levels and rising real disposable incomes mean that “the estimate of the economy’s dynamics this year is also higher than what we had initially forecast,” Mr. Siluanov said.

Source: https://baoquocte.vn/nga-bao-tin-vui-ve-nhap-khau-du-bi-lenh-trung-phat-cua-phuong-tay-lam-kho-kinh-te-moscow-tang-manh-290541.html