World Bank increases Russian GDP development forecast
Date
10/24/2024 8:53:30 AM
(MENAFN) The World bank (WB) has significantly revised its growth projections for the Russian economy, now anticipating a GDP expansion of 3.2 percent for the current year. This marks an increase from its previous estimate of 2.9 percent. The latest forecast, detailed in the World Bank's Europe and Central Asia Economic Update released on Thursday, also includes an upward adjustment for Russia's economic growth in 2025, which has been raised to 1.6 percent, up from an earlier projection of 1.4 percent. The growth forecast for 2026 remains unchanged at 1.1 percent.
According to the report, the robust growth in the Russian economy is attributed to several factors, including strong consumer sentiment, rising real incomes, and significant increases in government spending—particularly in defense and infrastructure. The report acknowledges that while the projected growth for this year is impressive, it is lower than the 3.6 percent growth recorded in 2023, primarily due to tighter monetary policies and mounting constraints on production capacity and labor resources.
In July, the World Bank highlighted that Russia's economic performance has remained resilient in the face of extensive Western sanctions, attributing this resilience to the country's strategic pivot toward Eastern markets and economic policies aimed at mitigating the impact of restrictions. Notably, the World Bank’s annual national income rankings indicate that Russia has progressed from the "upper middle" to the "high" income category, reflecting its strong economic growth.
Furthermore, the International Monetary Fund (IMF) has projected that the Russian economy will experience faster growth than all advanced economies in 2024, further underscoring the country's unexpected economic momentum in challenging conditions. As Russia continues to adapt to the geopolitical landscape, these revised forecasts suggest a degree of economic resilience that may surprise analysts and observers alike.
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