Upbeat forecast issued on Russia’s economic growth

The Russian Ministry of Economic Development expects solid growth of the country’s Gross Domestic Product (GDP) in the next three years, due to a partial resumption of consumer demand against the backdrop of rising wages, business daily RBK reported on Monday.

According to the ministry’s data, seen by the news outlet, the economy will grow 1.2% this year, following a decline of 2.1% in 2022. Next year, the GDP growth rate will be 2%, accelerating to 2.8% by 2026.

The report also indicated that the growth rate of investments in fixed assets by 2026 will be 4.5%, retail trade turnover will rise 3.6%, while real-wages growth was forecast to be 2.5%.

The ministry expects Russian oil and gas exports to grow annually by an average of 2.9%.

Earlier this month, both the World Bank and the International Monetary Fund (IMF) raised their growth forecasts for the Russian economy, the IMF saying Moscow was “able to maintain quite a bit of momentum in the economy by taking very strong fiscal measures.” 

The Russian government maintains a positive outlook for the economy in the coming years. Prime Minister Mikhail Mishustin has predicted that, by 2024, the Russian economy will be able to overtake developed countries in terms of growth.

President Vladimir Putin has also stated that the Russian economy is in better shape than previously expected and is on course for further stabilization. He added that Western sanctions and international pressure have failed to cause it serious harm, and that the figures have shown this.

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