(MENAFN) The Russian Ministry of Economic Development has revised its growth forecast for the country's economy in 2024, citing robust domestic consumer and investment demand. Economy Minister Maksim Reshetnikov announced during a government meeting that gross domestic product (GDP) is now projected to expand by 2.8 percent this year, surpassing the previous estimate of 2.3 percent.
According to the ministry, the Russian economy has not only adapted to the challenges posed by external economic conditions but has also demonstrated resilience and sustainable development. Despite facing tightening sanctions and a slowdown in the global economy, Russia's economic outlook remains positive, with domestic factors driving growth.
However, the ministry also highlighted several external risks that could potentially impact the country's economic trajectory. These include the ongoing tightening of sanctions, potential imbalances in supply and demand, and labor market-related issues. Despite these challenges, the ministry maintains its optimistic growth forecast for 2024, with GDP growth expected to remain steady at 2.3 percent in 2025.
In addition to GDP growth, the ministry also revised its forecasts for inflation, real disposable incomes, and retail trade. Inflation is projected to slow to 5.1 percent by the end of 2024, above the central bank's target of 4 percent. Real disposable incomes are expected to increase by 5.2 percent, while growth in retail sales is forecasted to reach 7.7 percent in real terms.
The revised forecasts come on the heels of an upward revision by the International Monetary Fund (IMF), which significantly increased its growth projections for the Russian economy in 2024. The IMF now expects GDP to grow by 3.2percent this year, a marked improvement from its earlier projections. The positive outlook for Russia's economy reflects a combination of domestic resilience and improved global economic conditions, despite ongoing geopolitical tensions and sanctions.
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