World Bank says Russia emerges as ‘high’ economy nation
(MENAFN) In a recent update to its annual national income rankings, the World bank announced that Russia has ascended from the "upper middle" income category to the more affluent "high" income category. This elevation is attributed to robust economic growth despite facing substantial international sanctions.
The World Bank determines these classifications based on gross national income (GNI) per capita, calculated in US dollars using a methodology established in 1989. Each year's update, effective July 1, reflects the previous year's economic performance.
In 2023, Russia's Economy saw notable expansion driven by several key sectors. Military-related activities experienced a significant increase, while trade, the financial sector, and construction also exhibited robust growth rates of 6.8 percent, 8.7 percent, and 6.6 percent respectively, as reported by the World Bank blog. These factors contributed to both real (3.6 percent) and nominal (10.9 percent) GDP growth. Importantly, Russia's Atlas GNI per capita rose by an impressive 11.2 percent.
This economic resilience is particularly remarkable given the backdrop of extensive sanctions imposed by the United States and its allies in response to geopolitical tensions, particularly related to the Ukraine conflict. Despite these challenges, Russia has demonstrated substantial economic fortitude and adaptability.
The sanctions regime, explicitly designed to weaken the Russian economy and influence political change in Moscow, underscores the significance of Russia's achievement in advancing to the "high" income category. This milestone not only reflects economic strength but also highlights Russia's ability to navigate complex geopolitical dynamics while sustaining growth and stability.
Moving forward, Russia's transition to a "high" income status is expected to have implications for its global economic standing and policy decisions, marking a pivotal moment in its economic trajectory amidst ongoing international scrutiny and economic pressures.
MENAFN02072024000045015839ID1108398486
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.