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Q1 figures point to more optimistic Russian GDP dynamics outlook for 2023 — regulator

The Bank of Russia expects the economy to continue recovering in 2024, with growth accelerating to 0.5-2.5% next year and stabilizing at the range of 1.5-2.5% by 2025

MOSCOW, April 18. /TASS/. Q1 2023 figures point more to the upper bound of the Bank of Russia’s outlook on GDP dynamics for this year (from -1% to 1%), the regulator’s Deputy Governor Alexey Zabotkin said in an interview with Channel One’s podcast dubbed ‘Easy Money’.

"Our baseline outlook for this year suggests GDP dynamics from -1% to 1%, though I should say at once that the first quarter’s figures that we have point to the fact that overall the situation is unfolding more towards the upper bound of this range," he said.

Earlier, the Central Bank upgraded its GDP projections for 2023, with its current outlook standing at the range from -1% to 1% compared with contraction by 1-4% expected previously. This was due to a higher level of output reached by the end of 2021, lower economic contraction in 2022 (estimated at -2.5% with contraction projected at 3-3.5%) and a higher level of stimulus spending in 2023.

The Bank of Russia expects the economy to continue recovering in 2024, with growth accelerating to 0.5-2.5% next year and stabilizing at the range of 1.5-2.5% by 2025.

The Central Bank’s officials said earlier that the regulator’s macroeconomic outlook might be adjusted at the upcoming key rate meeting of the board of directors in April.

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Central Bank of Russia GDP

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