The International Monetary Fund has updated its forecast for Russia in 2023 upward, doubling it after data pointing to a stronger economic performance in the first half of the year, according to an updated World Economic Outlook (WEO) released on Tuesday.

“The forecast for Russia in 2023 has been improved by 0.8 percentage points to 1.5 percent, reflecting hard data (on retail trade, construction, and industrial production) that imply that the first half of the year has been fruitful, with a large fiscal stimulus driving that strength,” the IMF said in its revised WEO.

Moreover, the WEO reported that major global economies face slowing growth in bank loans, and high interest rates may lead to tightening credit conditions.

“Immediate concerns about the banking sector have eased, but growth in bank loans in advanced economies has slowed, and high interest rates will likely lead to tighter credit conditions,” the international body highlighted.

For global inflation, the IMF forecasts it will fall to 6.8% this year, up 0.2 percentage points from its April forecast, and to 5.2% in 2024 from 8.7% in 2022.

The slowdown in growth is limited to the advanced economies, where GDP is expected to fall from 2.7% last year to 1.5% this year and 1.4% in 2024, while for the Eurozone GDP is forecast to fall to 0.9% from 3.5% last year. In contrast, growth in emerging markets and developing economies is expected to strengthen to 4.1% this year and in 2024 from 3.1% in 2022.