3 Oct 2022 13:29

Russian Central Bank still planning to upgrade forecast for Russia's GDP in 2022

MOSCOW. October 3 (Interfax) - The Central Bank of Russia is still planning to upgrade its forecast for Russia's GDP in 2022, which in July was projected to contract 4%-6%.

"We're going to refine the forecast at the board of directors' key rate meeting at the end of October. Most likely, the forecast for GDP in 2022 will be upgraded somewhat at it," Central Bank Deputy Governor Alexei Zabotkin said during hearings on the draft budget held at the Federation Council.

The Central Bank's July forecast projects that GDP will contract 4%-6% in 2022 and 1%-4% in 2023 followed by growth of 1.5%-2.5% in 2024.

"We assume that the low point in the contraction of GDP will be reached in the first half of 2023, and the process of stable recovery of economic activity will begin after that," Zabotkin said.

Central Bank Governor Elvira Nabiullina said in mid-September that the Central Bank is very likely to upgrade its forecast for GDP in 2022 at the board's key rate meeting on October 28.

The Central Bank said in a press release following its September board meeting that business activity in Russia was going better than expected in July and that the contraction in GDP would be closer to 4%.