IMF downgrades Russia's 2025 GDP growth forecast to 0.6%
IMF's Revised Economic Outlook for Russia
MOSCOW (Reuters) -The International Monetary Fund has downgraded Russia's gross domestic product (GDP) growth forecast for 2025 to 0.6% from 0.9%, below the official government forecast of 1%.
Factors Influencing GDP Growth
The Russian economy, heavily sanctioned by the West, is set to slow down sharply from 4.3% growth in 2024, primarily due to the high key interest rate set by the central bank to combat inflation.
Central Bank's Interest Rate Policy
The key rate is currently at 17%, with some business leaders suggesting that a rate between 12% and 14% is necessary to reignite economic growth.
Business Leaders' Recommendations
(Reporting by Gleb Bryanski; editing by Mark Heinrich)
