World Bank raises forecast for growth in Russia's GDP to 3.2% in 2024

MOSCOW. Oct 17 (Interfax) - The World Bank forecasts Russia's GDP to grow 3.2% in 2024 and 1.6% in 2025, the bank said in its updated Global Economic Prospects for emerging market countries in Europe and Central Asia.

The World Bank had projected Russia's GDP to grow 2.9% in 2024 and 1.4% in 2025, respectively, in its June Global Economic Prospects report.

The 2026 growth forecast is unchanged at 1.1%.

Tighter monetary policy and increasing constraints on production capacity and labor resources are expected to slow Russia's growth, which was 3.6% in 2023, this year, the World Bank said.

"Growth remains well above potential because of buoyant consumer sentiment, higher real incomes, and substantial increases in government spending, including on defense and infrastructure," it said.

The World Bank has increased the growth forecast for Europe and Central Asia in 2024 to 3.3% from 3%, the 2025 forecast to 2.6% from 2.3% and 2026 to 2.7% from 2.4%.