Source link : https://london-news.net/world-bank-warns-of-russias-economic-stagnation-as-growth-outlook-deteriorates/
The World Bank’s latest forecast indicates that Russia’s economy is on a path toward stagnation rather than experiencing a “managed slowdown.” The organization revised its growth expectations downward, warning that economic output is unlikely to increase by more than 1% annually until 2028.
The bank now anticipates that Russia’s GDP will grow by 0.9% in 2025, a decrease from its previous estimate of 1.4% made in June. For 2026, it projects a growth of 0.8% and 1% for 2027. Additionally, it foresees a 0.4% drop in investment this year, with a further decline of 0.2% next year before a modest recovery in 2027.
Falling oil prices, decreased exports, and high interest rates were identified by the World Bank as significant obstacles to growth. The institution noted that fiscal stimulus measures have mostly played out, while private demand and investment are under considerable strain. A persistent shortage of labor is also expected to constrain production.
The bank projects that Russia’s budget deficit will increase to 2.9% of GDP this year, surpassing the Finance Ministry’s estimate of 2.6%, and it is expected to hover around 2.7% in 2026 and 2027.
On a more positive note, inflation is predicted to decrease from 7.5% this year to 4.5% in 2026 and further to 4% in 2027.
Other analysts are also revising their growth forecasts downward. The Kremlin-affiliated think tank CMAC expects GDP growth to be just between 0.7% and 1% this year and between 1.4% and 1.7% in…
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Publish date : 2025-10-09 13:23:00
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