MOSCOW, February 26. /TASS/. The scale of economic overheating in Russia did not subside in the fourth quarter of 2024 while economic growth could accelerate, the Bank of Russia said in the Summary of the Key Rate Discussion.
"In Q4 the scale of economic overheating did not subside. The mounting inflation pressure and persisting labor market strains point to it," the Central Bank said.
Economic growth could accelerate in Q4 2024 due to increased budget expenditures in this period among other things, regulator said.
The board of directors of the Bank of Russia expects in the base case scenario that overheating will subside under the influence of the monetary policy. "Since economic growth will slow down from a higher level the outlook on its rates has been upgraded by 0.5 percentage points to 1-2% in 2025. The forecast for 2026 has been downgraded by 0.5 percentage points to 0.5-1.5%, with a longer period of maintained tight monetary conditions taken into account. In 2027, the economy will return to balanced growth rates that are still estimated at 1.5-2.5%," the regulator noted.