World Bank raises Russia's 2024 GDP growth outlook to 2.2% from 1.3%

MOSCOW. April 11 (Interfax) - The World Bank has raised its GDP growth outlook for Russia in 2024 to 2.2% from the 1.3% it expected in January.

Forecast growth for 2025 has been improved to 1.1% from 0.9%, the World Bank says in its latest Europe and Central Asia region report.

The Russian economy grew 3.6% in 2023, the report says.

"The medium to long-term economic prospects remain dull. Russian businesses and households continue to be affected by great uncertainty, restrictions on export of a wide range of goods, persisting gaps in supply of some technological equipment, and higher trade costs," the World Bank said.

"Restrictions on Russia's exports have put pressure on the external balance, exchange rate, and fiscal receipts," it said. "The fiscal position has deteriorated, with energy receipts compressed by the sanctions, and a sharp increase in general government spending on defense and national security, and social transfers," it said.

The World Bank said there was a scarcity of labor for activities not related to the military.

"Overall, loss of skilled workers, restrictions on imports of technological goods, and loss of productive FDI is expected to depress medium- to long-term growth prospects," the report says.

The World Bank expects consumer price inflation in Russia will be 6.9% in 2024, falling gradually to 4% in 2026.