Russia’s economy is expected to grow by 1.1% in 2024, slower than previously expected. international monetary fund Said The latest World Economic Outlook report was released on Tuesday.
The latest forecasts put Russia at the bottom of the IMF’s list of major emerging market and developing countries, with average growth expected to be 4% this year and next.
The Central Bank of Russia dates back to September cropped The company’s own GDP growth forecast for 2024 is 0.5% to 1.5%, compared to 0.5% to 2.5% as of July.
The IMF’s latest forecast comes as the Russian government plans to increase defense spending by almost 70% next year, exceeding spending on social policy, education, environmental protection and health, according to the Ministry of Finance’s budget proposal. It was done.
Meanwhile, the IMF has revised Russia’s growth forecast for 2023 to 2.2% from the 1.5% expected growth in July, citing “solid consumption against the backdrop of significant fiscal stimulus, strong investment, and a tight labor market.” increased to %.
Russia’s Ministry of Economic Development forecasts GDP growth rate of 2.8% in 2023.
Last year, drastic capital controls, emergency interest rate hikes and a surge in production of guns, missiles, tanks and shells used against Ukraine helped Russia’s economy defy forecasts for GDP to reach double digits. .
But economists generally say Russia’s economy is overheating, due in part to a surge in government spending to finance the invasion of Ukraine, and that efforts to combat inflation are likely to stifle growth. We agree on the point of view.
