The Ministry of Economic Development predicted visible GDP growth in 2023

The Ministry of Economic Development expects “visible growth” of the Russian economy in 2023, and an updated forecast will be presented in April. This was announced by the head of the department Maxim Reshetnikov.

“Now we are preparing scenario conditions for the development of the economy for the next three years, which will form the basis for the formation of the budget. We confirm our positive expectations for this year. Expected visible growth of key indicators related to economic development, investment and household income,” he said (cit. according to Interfax), without specifying how significant the growth will be.

On March 23, Prime Minister Mikhail Mishustin, speaking with a report on the work of the government in the State Duma, remindedthat analysts estimated the decline in Russian GDP in double digits, and the decline was indeed inevitable in such conditions, but it turned out to be quite moderate: “However, we returned the economy to a growth trajectory. Now even some international organizations are predicting positive dynamics for us in 2023 and reaching a growth rate of gross domestic product higher than developed countries in 2024,” he said.

Formerly ACRA rating agency predicted decline in Russia’s GDP in 2023 at the level of 1-1.5% instead of the previously forecasted 2.8%. According to the base case, Russia’s GDP growth in 2024 will be 0.8-1.8%, in 2025 – 0.4-1.6%.

According to the estimates of the Ministry of Economic Development, by the end of 2023, GDP will decrease by 0.8%, while in 2024 the Russian economy is expected to grow by 2.6%. In February, the Central Bank improved its GDP forecast for 2023 from a 1% decline to a 1% growth instead of a 1-4% decline according to the October forecast.

During his address to the Federal Assembly, Russian President Vladimir Putin said that Russia “was predicted to collapse the economy”, but the decline in GDP in 2022 was 2.1%. In mid-March, the head of state notedwhich expects a “significant increase” in the Russian economy in the second quarter.