World Bank confirms forecast for Russia's GDP growth at 1.6% in 2025, 1.1% in 2026

MOSCOW. Jan 17 (Interfax) - The World Bank forecasts that Russia's GDP will increase 1.6% in 2025 and 1.1% in 2026, the bank said in its January issue of Global Economic Prospects.

The bank has thus confirmed the forecasts it made in October.

Russia's GDP growth slowed from 3.6% in 2023 to 3.4% in 2024, according to the bank's estimates.

The slowdown in the economic growth rate last year was mainly due to weakening private consumption amid tight monetary policy and elevated inflation, the bank said.

The World Bank expects that private consumption and investment in Russia will continue to weaken due to the slowdown in wage growth and tight monetary policy. Budget stimuli will also decline, it said.

"Energy export volumes are expected to recover gradually," the bank said.

"Over the longer term, constraints on productive capacity, including labor resources, are expected to weigh on potential growth," it said.

GDP growth in developing countries in Europe and Central Asia will be 2.5% in 2025 and 2.7% in 2026, according to the bank's forecast.