World Bank Increases Projection for Russian GDP Growth
The World Bank has reported that Russian economic growth continues to be “well above potential,” driven by strong consumer confidence and increased real incomes. Read Full Article at RT.com
TroibNews 
The World Bank has significantly revised its growth forecast for the Russian economy, now expecting the country's GDP to increase by 3.2% this year, up from a previous estimate of 2.9%.
Additionally, the World Bank has raised its 2025 economic growth prediction for Russia to 1.6%, an improvement from the 1.4% forecast made in June. The outlook for 2026, however, remains steady at 1.1%.
The report highlights that “growth remains well above potential because of buoyant consumer sentiment, higher real incomes, and substantial increases in government spending, including on defense and infrastructure.”
Despite this positive growth projection, it is anticipated that this year's expansion will be lower than the 3.6% recorded in 2023 due to stricter monetary policies and increasing limitations on production capacity and labor resources.
In its annual national income rankings published in July, the World Bank noted that Russia's economic growth has managed to resist Western sanctions. Analysts have pointed to Russia’s pivot toward Eastern trade and economic measures taken to mitigate the impact of these sanctions as key factors in this resilient performance.
The World Bank's rankings reflect Russia's advancement from the “upper middle” to the “high” economic category, driven by its strong economic growth. Meanwhile, the International Monetary Fund projects that the Russian economy will outpace all advanced economies in growth during 2024.
Russian Finance Minister Anton Siluanov indicated that the economy’s growth is surpassing initial expectations, with GDP forecasts now suggesting a rise of 3.9% this year. He attributed this to increased investment and rising real disposable incomes, remarking that “the estimates for the dynamics of the economy for this year are also higher than we initially included in our forecasts.”
Ian Smith for TROIB News
Additionally, the World Bank has raised its 2025 economic growth prediction for Russia to 1.6%, an improvement from the 1.4% forecast made in June. The outlook for 2026, however, remains steady at 1.1%.
The report highlights that “growth remains well above potential because of buoyant consumer sentiment, higher real incomes, and substantial increases in government spending, including on defense and infrastructure.”
Despite this positive growth projection, it is anticipated that this year's expansion will be lower than the 3.6% recorded in 2023 due to stricter monetary policies and increasing limitations on production capacity and labor resources.
In its annual national income rankings published in July, the World Bank noted that Russia's economic growth has managed to resist Western sanctions. Analysts have pointed to Russia’s pivot toward Eastern trade and economic measures taken to mitigate the impact of these sanctions as key factors in this resilient performance.
The World Bank's rankings reflect Russia's advancement from the “upper middle” to the “high” economic category, driven by its strong economic growth. Meanwhile, the International Monetary Fund projects that the Russian economy will outpace all advanced economies in growth during 2024.
Russian Finance Minister Anton Siluanov indicated that the economy’s growth is surpassing initial expectations, with GDP forecasts now suggesting a rise of 3.9% this year. He attributed this to increased investment and rising real disposable incomes, remarking that “the estimates for the dynamics of the economy for this year are also higher than we initially included in our forecasts.”
Ian Smith for TROIB News
