25 Dec 2024 12:11

Russian GDP could grow 2%-2.5% in 2025 - Novak

MOSCOW. Dec 25 (Interfax) - Russian GDP could grow 2%-2.5% and investment about 2% in 2025, Deputy Prime Minister Alexander Novak said in an interview with the Rossiya-24 TV channel.

"We expect [GDP growth] to be about 2%-2.5% next year," he said.

"Investment will grow about 2% compared to 2024. This is also a good signal and an upside, because the 2024 level is very high. The base is high, so it is important for us that the growth rate is positive relative with relation to this high base," he said.

Novak also said t the fact that the Central Bank did not raise the key rate at the last meeting was "a good signal and a substantiated decision."

"Of course, there is an indicator, largely to curb inflation, that concerns consumer lending and lending to the commercial sector. This year, lending in the banking sector is very high. Today, we are already seeing a slowdown due to the measures taken by the Central Bank and the Russian government. All this should influence slower inflation," he said.

The Central Bank forecasts GDP growth of 0.5%-1.5% in 2025.

The official forecast given by the Economic Development Ministry in September, included in the 2025 budget - the ministry based its forecast on expectations of a softer monetary policy at the end of 2024 and 2025 - says GDP will grow 2.5% in 2025.

A consensus forecast of analysts polled by Interfax in early December is for 1.5% GDP growth in Russia in 2025.