The outlook for the Russian economy after 2023 is ‘quite catastrophic’, warns Kristalina Georgieva after the criticism he received International Monetary Fund for his predictions what they want Russia show stronger growth than the UK and Germany this year, despite increased pressure from Western sanctions.

In January, the IMF forecast that Russia’s economy would grow 0.3% this year and 2.1% in 2024. These are much more optimistic forecasts than the forecasts of the World Bank and the Organization for Economic Cooperation and Development, which indicate a contraction of the Russian economy by 3.3% and 5.6%, respectively.

Even Russia’s central bank, which yesterday extended capital controls for another six months, warned that GDP could shrink by 1% this year.

Speaking to CNN, Ms. Georgieva stressed that “if you look at our medium-term forecasts, this means that the Russian economy is shrinking by at least 7%.” The response came after Yale University professor Jeffrey Sonnenfeld wrote in Fortune magazine on Monday that “the IMF has fallen asleep at the wheel” and is repeating Putin’s propaganda.

“As for Russia, it naively echoes Putin’s own GDP forecasts, practically canonizing and legitimizing these economic myths without verification,” wrote a professor who compiled a list of companies winding down their activities in Russia since the war broke out. .

The Russian economy will take a long-term hit as its workforce dwindles as many workers emigrate to avoid war, while at the same time losing access to the high technology of Western advanced economies, Ms Georgieva said. And at the same time, the sanctions imposed on it by the Western world affect the energy sector. This year, Russia was able to move some of its oil exports outside the EU, the IMF chief said, referring to China and India. “This will not have a lasting impact on the Russian economy,” he stressed. In conclusion, the head of the IMF added that the fund “does not believe that Russia will receive any benefit from what it has done to Ukraine and itself.”