Russia is expected to grow faster than all advanced economies this year

Russia's economy is expected to grow faster than all advanced economies this year, according to the International Monetary Fund.

Russia is expected to grow 3.2% in 2024, the IMF said in its latest World Economic Outlook published Tuesday, exceeding the forecast growth rates for the U.S. (2.7%), the U.K. (0.5%), Germany (0.2%) and France (0.7%).

The prediction will be galling for Western nations which have sought to economically isolate and punish Russia for its 2022 invasion of Ukraine.

Russia says Western sanctions on its critical industries have made it more self-sufficient and that private consumption and domestic investment remain resilient. Meanwhile, continuing oil and commodity exports to the likes of India and China, as well as alleged sanctions evasion and high oil prices, have allowed it to maintain robust oil export revenues.

Russia's military-industrial complex has also expanded significantly during the war as defense spending and production have rocketed. In short, Russia has adapted to a "new normal" as its economy has been put on a war footing.

The IMF predicted that Russia's economic growth would moderate in 2025, however, declining to 1.8% "as the effects of high investment and robust private consumption, supported by wage growth in a tight labor market, fade."

The Washington-based IMF includes the U.S., U.K., the euro area's largest economies, Canada and Japan as advanced economies. Russia, China and India remain in its "emerging and developing" Europe and Asia categories, respectively.

The head of the IMF told CNBC in February that the Russian economy was still facing significant headwinds despite the Fund's rosy forecasts for the country of roughly 145 million people.

"What it [the growth data] tells us is