Russia’s Finance Minister Anton Siluanov has projected the country’s GDP will grow by 1.5% this year according to the latest forecasts.
“Indeed, if we see rather tough conditions of pursuing the monetary policy this year, we see nevertheless that economic growth rates will be at least 1.5% this year, at least according to the estimate of the Ministry of Economic Development,” Siluanov said.
According to the Ministry, work on the macroeconomic forecast continues and the updated figures will be presented soon.
Siluanov told President Vladimir Putin that the Economy Ministry now saw growth of at least 1.5% this year. The official forecast for 2025 was 2.5%.
“A balanced budget will give more opportunities to the Central Bank to soften the monetary and credit policy, which means that credit resources will be more accessible, more resources will appear in the sectors of the economy. Accordingly, next year this will give an additional impetus to socio-economic development.”
Russia’s economy grew 4.3% in 2024, though the central bank forecasts growth of 1-2% this year.
“There are a lot of nuances in terms of ensuring economic growth,” Putin told Siluanov. “But in general, of course, I support this approach.”
Russia’s economy grew robustly over 2023 and 2024 despite multiple rounds of Western sanctions imposed after its invasion of Ukraine in 2022 but is slowing sharply this year.
Domestic activity has become strained by labour shortages and high interest rates introduced to tackle inflation, which has accelerated under record military spending.
