The World Bank has improved its forecast for Russia’s GDP growth in 2024–2025 – Kommersant

The World Bank raised its forecast for Russia’s GDP growth for 2024 to 2.2%; in January, growth was expected at 1.3%. The country’s GDP growth in 2025, according to the World Bank forecast, will be 1.1%. The forecast also expects inflation in Russia to be 6.9% in 2024, before falling to 4% in 2026.

“Between mid-2020 and January 2024, the median unemployment rate in Central Europe fell from 6.6% to around 5%. In Russia, unemployment has dropped to below 3%, which is half as much as in 2020,” the report says. report World Bank on economic development prospects for Europe and Central Asia.

The World Bank also reports an increase in consumption in Russia. The reason for this, the report says, was a significant increase in wages and an increase in government spending. However, it is noted that the medium and long-term prospects for the Russian economy are still unclear.

In some countries, especially in Central Asia and the South Caucasus, the World Bank has also noted an increase in the influx of migrants from Russia. Because of this, these countries are experiencing an increase in housing prices and demand for it.

GDP growth in Russia in February 2024, according to the Ministry of Economy, made up 7.7% year-on-year after an increase of 4.6% in January.

During the government’s annual report to the State Duma, Russian Prime Minister Mikhail Mishustin reportedthat the country’s GDP growth was twice that of developed countries.

About the reasons for the unexpected acceleration of the economy in 2023 – in the publication “Kommersant” “GDP was taken out of reserves”.

Evgeny Belousov