(MENAFN) The World Bank (WB) has upgraded its growth forecast for Russia, now expecting a 3.2% GDP increase this year, up from 2.9%. In their latest report, they also projected 1.6% growth for 2025, an increase from 1.4%, while keeping the 2026 forecast at 1.1%.
The Russian economy is growing above its potential, driven by strong consumer sentiment, rising incomes, and government spending, especially in defense and infrastructure. However, the expected growth for 2024 is lower than 2023’s 3.6%, due to tighter monetary policies and production limits.
Previously, the WB noted that Russia’s economy has shown resilience against Western sanctions, aided by increased trade with Eastern partners and specific economic policies. The WB also moved Russia from “upper middle” to “high” income status, indicating economic progress. The IMF expects Russia’s economy to outpace all advanced economies in growth for 2024.
This optimistic revision signifies a shift in views on the Russian economy’s adaptability and growth potential.
`
