Russian central bank reports 4.4 pct GDP growth in Q2, predicts 3.2 pct growth in Q3

MOSCOW, Aug. 7 (Xinhua) — The Russian Central Bank reported a 4.4 percent GDP growth in annual terms for the second quarter this year, and predicted a 3.2 percent rise in the third quarter, according to the bank’s medium-term forecast published on Wednesday.
According to the bank, the Russian economy is expected to grow by 3.5 to 4 percent in 2024 and 0.5 to 1.5 percent in 2025 year on year. The bank expects GDP to grow by 1 to 2 percent in 2026 and by 1.5 to 2.5 percent in 2027.
The bank also noted that inflation will decline “more slowly than previously expected,” but is expected to return to the target by the end of 2025.
In a recent meeting on July 26, where Russia’s central bank raised the key interest rate from 16 to 18 percent, it said it revised its inflation forecast for 2024, raising it to the range of 6.5 to 7.0 percent. It said that annual inflation would decline to the range of 4.0 to 4.5 percent in 2025 and stay close to 4 percent further on. ■