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Russia's GDP down 0.2% in 2023, up by 1.2% in 2024 — World Bank’s outlook

In 2024, Russia’s GDP will grow by 1.2% and in 2025 by 0.8%

WASHINGTON, June 6. /TASS/. The World Bank (WB) confirmed the April forecast for the dynamics of Russia's GDP this year, it is expected that this indicator will decrease by 0.2%. This is according to estimates given in the organization's June report published on Tuesday.

In 2024, Russia’s GDP will grow by 1.2% and in 2025 by 0.8%, the report says.

The document states that the forecast for the dynamics of Russia's GDP this year "improved by 3.1 percentage points compared to the estimates presented in January."

This change reflects the unexpected resilience of oil production and greater-than-expected growth impact from 2022, the bank said.

According to the WB experts, a further reduction in exports, weak domestic demand, political uncertainty and sanctions against Russia imposed in connection with the special military operation in Ukraine will continue to affect [economic] activity.

Growth is expected in 2024, but it will be modest at only 1.2%, below the average growth rates in the 2010s. The economy is expected to face persistent structural challenges, including unfavorable demographic trends, as well as low investment and labor productivity, the document says.

The June report confirms the revised forecasts that were presented in April in the WB report on the prospects for economic development in Eastern Europe and Central Asia. In January, WB experts predicted a 3.3% decline in Russia's GDP this year and an increase of 1.6% in 2024.

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