Russia's GDP could grow 1.6%-1.8% in 2024, accelerate to around 2% from 2025 - VEB.RF chief economist

YEKATERINBURG. Nov 17 (Interfax) - Growth in Russia's GDP could underperform the Economic Development Ministry's official forecast at 1.6%-1.8% in 2024, but then accelerate going forward, VEB.RF chief economist Andrei Klepach said in a statement.

"Our government is overly optimistic, expecting GDP growth of 2.3% [in 2024]; our estimate is 1.6%-1.8% [...] and around 2% going forward," Klepach said on Friday at the "Russian Regions in Focus of Change" conference in Yekaterinburg.

Klepach added that the drivers of economic development that exist this year "will largely continue to function", including the housing construction market, which was undervalued in 2021-2022.

"The pace of construction is record setting, and the weight of the sector is important at nearly 9% of GDP," Klepach clarified.

Growth in Russia's GDP in 2023 could exceed the official forecasts of the Economic Development Ministry and the Central Bank of Russia (CBR) and reach 3.2%-3.3%, Klepach had said previously.

The Economic Development Ministry expects Russia's GDP to grow 2.3% in 2024, the Central Bank projects growth of only 0.5%-1.5%, and the consensus forecast of analysts surveyed by Interfax in early November envisages growth of 1.3% in 2024.