World Bank expects slowdown in Russia's economic growth – updated forecast

The World Bank has forecast a decline in Russia's economic growth in 2024-2025.

Source: The World Bank's January forecast

Details: Russia's GDP is expected to grow by 1.3% in 2024. However, the growth of the Russian economy will slow down compared to that in 2023.

Russia's economic growth will slow down even further in 2025, with GDP growth projected at 0.9%.

The World Bank estimates that the Russian economy grew by 2.6% in 2023.

According to the World Bank, the country''s economy grew faster than expected in 2023, driven by significant fiscal support, including additional military spending.

At the same time, oil production and exports declined slightly, and the authorities announced the extension of export restrictions by 300,000 barrels per day until the end of 2023, as well as their deepening by 200,000 barrels per day starting from January 2024.

Furthermore, the depreciation of the exchange rate has led to an increase in inflation, which has triggered a further rise in the key policy rate.

Background: The World Bank's June Global Economic Prospects report attributed the growth of the Russian economy to higher government spending on military needs and an increase in related social payments, as well as to the preservation of consumption in the country.

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