Sberbank raised its forecast for Russia’s GDP for 2023

Sberbank predicts Russia’s GDP growth by 1% by the end of 2023. Previously, the credit institution expected zero growth in this indicator. This was announced by Taras Skvortsov, Vice President, Director of the Finance Department of Sberbank, during a call with investors.

“Based on the latest statistics, we are improving our forecast for the growth of the Russian economy as a whole for the year to about 1%,” – leads his words TASS.

Skvortsov also noted the recovery of economic activity against the backdrop of increased domestic demand.

Today, May 18, Sberbank informedthat the consumer confidence index hit a five-year high. According to the results of the first quarter, it rose to -15% after -21% in the fourth quarter of 2022. Analysts note an improvement in consumer sentiment among Russians in terms of large purchases – this may help restore demand for household appliances, electronics and furniture. At the same time, the shares of Russians worried about inflation and unemployment hit new lows and amounted to 29% and 28% after 40% and 39% in October-December 2022.

In April, Minek improved forecast for the Russian economy in 2023 from a decline of 0.8% (in the September forecast) to growth of 1.2%. The main contribution to economic growth, according to Minister Maxim Reshetnikov, will be made by the recovery of consumer demand after the recession in 2022. The expected growth in household incomes will contribute to this, he noted. The forecast for GDP growth next year has been reduced from 2.6% to 2%. In 2025, the indicator will grow by 2.6%.

At the end of April, the Bank of Russia improved its forecast for inflation and the rate of recovery of the Russian economy in 2023. The regulator now expects GDP growth of 0.5-2%, although back in February it predicted a decline. According to the Central Bank, inflation in 2023 will be 4.5-6.5%.

According to the Ministry of Economy, in the first quarter of 2023, the country’s GDP decreased by 2.2%, according to the Central Bank – by 2.3%. According to Rosstat’s preliminary estimate, the reduction was 1.9%.