IMF 2025 growth forecast for Russia too pessimistic, does not factor in govt measures - minister

MOSCOW. Oct 24 (Interfax) - The International Monetary Fund's (IMF) forecast of 1.3% for Russian GDP growth in 2025 is pessimistic and does not take into account measures being taken by the authorities, Economic Development Minister Maxim Reshetnikov told reporters on the sidelines of the BRICS summit in Kazan.

He also said the current performance of the economy confirms his ministry's growth forecast of 3.9% for 2024 is on track to come true.

"The revision of the IMF forecast for the Russian economy looks predictable, the figures are in line with the already traditional trend for western institutions. This is raising estimates for the current year in light of the objective results of the Russian economy's development and a knowingly pessimistic forecast for the next year," Reshetnikov said.

"The Russian economy is steadily developing and the forecast figure of 3.9% is expected to be reached in 2024. The processes of structural transformation, formation of a supply economy are continuing. The IMF's estimates for 2025 do not factor in the implementation of proactive economic policy measures, including ones aimed at providing the economy with human resources, capital and technologies," Reshetnikov said.

The IMF has raised its forecast for Russian GDP growth in 2024 to 3.6%, from the 3.2% it predicted in July, the Fund's October World Economic Outlook, published on Tuesday, showed. The Russian growth forecast for 2025, however, was lowered to 1.3% from 1.5%.

The IMF is now forecasting lower growth than the 3.9% and 2.5% that the Russian Economic Development Ministry is predicting for 2024 and 2025, respectively. But the IMF's forecasts are within the Central Bank of Russia's forecast ranges of 3.5%-4.0% for 2024 and 0.5%-1.5% for 2025.