MOSCOW, July 26. /TASS/. Russia’s Minister of Economic Development Maxim Reshetnikov believes that potential growth of the Russian GDP is higher than the estimates of the Bank of Russia, he said on Friday.

"We believe that potential economic growth is higher than the estimates of the Bank of Russia. Despite the labor market restrictions, it shows quite a lot of flexibility. We are currently preparing initiatives together with the Ministry of Labor based on business proposals, discussing issues of increasing the flexibility of labor relations. We assume that the reserves for labor productivity growth in the economy are quite large," the minister said.

On July 26, the Board of Directors of the Bank of Russia decided to raise the key interest rate for the first time since December 2023 from 16% to 18% per annum. In the future, the regulator will consider the advisability of further increases.

The Bank of Russia also raised its forecast for GDP growth in 2024 to 3.5-4%. In 2025, according to the Central Bank, the Russian economy will grow by 0.5-1.5% (previously predicted - 1-2%), and in 2026 - by 1-2% (1.5-2.5%). The Ministry of Economic Development expects the Russian economy to grow by 2.8% in 2024, by 2.3% in 2025 and 2026, and by 2.4% in 2027.