World Bank increases Russian GDP development forecast

Date

10/22/2024 9:01:33 AM

(MENAFN) The World bank (WB) has notably revised its growth forecast for the Russian economy, now projecting a GDP expansion of 3.2 percent for this year. This marks a significant increase from the previous estimate of 2.9 percent. In its latest Europe and Central Asia Economic Update, released on Thursday, the WB also adjusted its growth outlook for Russia in 2025 to 1.6 percent, up from the earlier prediction of 1.4 percent. The 2026 forecast remains steady at 1.1 percent.

The report highlights that the Russian Economy is experiencing growth well above its potential, driven by several factors including robust consumer sentiment, increased real incomes, and substantial government spending—particularly in defense and infrastructure sectors. However, while the forecast for 2024 reflects a positive outlook, it is projected to be lower than the 3.6 percent growth recorded in 2023. This anticipated decline is attributed to tighter monetary policies and constraints on production capacity and labor resources.

In a previous report in July, the WB noted that Russia’s economic growth has managed to withstand the impact of Western sanctions. Analysts have pointed to Russia’s strategic pivot towards Eastern trade partners and the implementation of economic policies designed to mitigate the effects of sanctions as key factors behind this resilience.

As part of its annual national income rankings, the World Bank also announced that Russia has moved from the “upper middle” income category to the “high” income category, further underscoring the country’s economic progress. Additionally, the International Monetary Fund (IMF) has indicated that it expects Russia’s economy to grow at a faster rate than that of all advanced economies in 2024.

This upward revision by the World Bank signifies a notable shift in perception regarding the Russian economy, reflecting its adaptability in the face of external challenges and its potential for future growth.

MENAFN22102024000045015687ID1108806387

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.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}