World Bank issues new Russian GDP forecasts

The country’s economy is projected to grow 1.3% this year, according to the latest report

The Russian economy outperformed expectations in 2023, according to the latest report by the World Bank, which estimates the country grew at 2.6% for the year. This is an upward revision from the previous projection of 1.6% growth.

According to the publication issued on Tuesday, the stronger-than-expected recovery was fueled by substantial fiscal support, including additional military spending.

The World Bank projects that Russia’s economy will grow by 1.3% in 2024 and 0.9% in 2025, adding that tightening monetary policy is expected to dampen domestic demand. “Trade diversion to China, India, and Türkiye is evident for both exports and imports,” the World Bank wrote. “Capacity constraints, including tight labor market conditions and scarcity of domestic labor will continue to restrict growth.”

The head of the Russian central bank, Elvira Nabiullina, said last month that the country’s GDP is expected to have grown by around 2.7% in 2023, driven by strong domestic demand. For 2024, the central bank is projecting growth of 0.5% to 1.5%. This estimate, however, will be reviewed in February, Nabiullina said, adding that it is important to make “timely decisions” to cool excess demand and reduce inflation.

President Vladimir Putin praised the country’s performance during his annual address in December, claiming the economy has shown strength and stability in the face of outside pressure.

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About Stu Turley 3409 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.