The gross domestic product (GDP) of Russia will decrease by only 0.9 percent at the end of this year. The West forecast a decline of 3.2 percent instead.
This was announced by the European Commission in its latest spring report on projections of Russian GDP for 2023 and 2024.
The commission also improved the forecasts of GDP growth for 2024. According to earlier reports, the indicator was supposed to grow by 0.9 percent over the next year. The latest data show better results – a growth of 1.3 percent.
The unemployment situation in the country is also estimated to be at a better level during this and the next year.
The overall level of unemployment in the country will reach 3.7 percent this year and four percent next year. The EC’s autumn forecasts expected an unemployment level of 4.5 and 4.6 percent for the mentioned periods.
The EC further states that inflation in the country should reach the level of 6.4 percent at the end of 2023, and 4.6 percent for the following year.
The Central Bank of Russia predicts that inflation at the end of 2023 will be between five to seven percent. At the end of 2024, the indicator is expected to return to the targeted four percent.
In April, inflation was 2.31 percent annually.
The Minister of Economic Development of the Russian Federation Maxim Reshetnikov stated at the beginning of May that it can be expected that the total value of producing final goods and services provided in Russia will record excellent results at the end of this year. Russia could be one of the world leaders when it comes to the GDP growth of developed countries annually.
“The International Monetary Fund forecasts GDP growth of 1.3 to 1.6 percent for developed countries. We know that this organization often shows data in its projections that are lower than expected. Russia usually exceeds its forecasts,” he explained. He then added that official data from Moscow indicates GDP will grow by 1.2 percent at the end of 2023.
He mentioned that the EU countries’ economic development will decrease inevitably since the use of Russian energy sources was stopped.
