World Bank raises forecast for growth in Russia's GDP to 2.6% in 2023, confirms outlook for 2024 and 2025

WASHINGTON. Jan 9 (Interfax) - The World Bank has raised its forecast for growth in Russia's GDP to 2.6% in 2023 from its October outlook of 1.6%, the bank said in its January Global Economic Prospects overview.

The bank has retained its growth forecast of 1.3% for 2024 and 0.9% for 2025, according to the review.

The World Bank attributes the stronger-than-expected growth in Russia's GDP specifically to substantial budget support.

Russia's economic growth rate should decelerate to 1.3% in 2024 and further to 0.9% in 2025, with the tightening of monetary policy on the part of the Central Bank of Russia (CBR) likely to weaken domestic demand, the World Bank said in the review.

Limited capacity, including a labor shortage, will also likely restrain Russia's economic growth, the World Bank said.