OECD improves forecast for Russia's GDP in 2023

OECD improves forecast for Russia's GDP in 2023

The Organization for Economic Cooperation and Development (OECD) expects Russia's GDP to contract by 2.5% in 2023. In November 2022, the OECD predicted a 5.5% decline in the Russian economy this year. However, the forecast for 2024 was worsened - a fall of 0.5% is expected instead of 0.2%.

According to report OECD, the inflation rate in Russia this year will slow down from 14% to 6.4% (6.7% was predicted in the November report). The inflation forecast for 2024 was lowered from 6.1% to 5.3%. Improvements are also predicted in global GDP. According to the OECD, in 2023 the indicators will grow by 2.6%, in 2024 by 2.9%. In 2022, the growth was 3.2%.

The main reason for the improvement in forecasts in the organization was the reduction in the cost of energy and food. The OECD believes that the opening of Chinese borders will also have a positive impact on global activity and reduce pressure on the supply chain.

According to the official forecasts of the Ministry of Economic Development, GDP in 2023 will decrease by 0.8%, in 2024 GDP will grow by 2.6%. The International Monetary Fund expects the Russian economy to grow by 0.3% this year.

About how the World Bank assesses the dynamics of the GDP of the Russian Federation - in the material "Kommersant" "Definitely no good".

Milena Kostereva

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