EC downgrades outlook on Russia’s GDP growth for 2025 to 1.7% from 1.8%
The EC also projects inflation to gradually decelerate over the course of 2025.
The European Commission (EC) has downgraded its outlook on growth of Russia’s economy from 1.8% to 1.7% for 2025, and from 1.6% to 1.2% for 2026, the EC said in its Spring 2025 Economic Forecast.
"Overall, GDP growth is projected to decelerate from 4.3% in 2024 to 1.7% in 2025 and further to 1.2% in 2026," the European Commission said.
The EC also projects inflation to gradually decelerate over the course of 2025. "Over the course of 2025, inflation is forecast to gradually decelerate, averaging 9.5% for the year as a whole, as the tight monetary policy precludes lending in the civilian sector without access to preferential loans and reduces private demand. Real wage growth is expected to continue declining throughout the year. These trends are projected to continue in 2026, pushing annual inflation down to 5.8%," the document reads.
Public investment and subsidized private investment in some sectors are expected to buoy aggregate investment and prevent it from contracting, despite the high interest rates, EC experts said.
In the external sector, the deteriorating global economic and foreign trade environment is expected to depress Russia’s export and import growth.
Source
The European Commission (EC) has downgraded its outlook on growth of Russia’s economy from 1.8% to 1.7% for 2025, and from 1.6% to 1.2% for 2026, the EC said in its Spring 2025 Economic Forecast.
"Overall, GDP growth is projected to decelerate from 4.3% in 2024 to 1.7% in 2025 and further to 1.2% in 2026," the European Commission said.
The EC also projects inflation to gradually decelerate over the course of 2025. "Over the course of 2025, inflation is forecast to gradually decelerate, averaging 9.5% for the year as a whole, as the tight monetary policy precludes lending in the civilian sector without access to preferential loans and reduces private demand. Real wage growth is expected to continue declining throughout the year. These trends are projected to continue in 2026, pushing annual inflation down to 5.8%," the document reads.
Public investment and subsidized private investment in some sectors are expected to buoy aggregate investment and prevent it from contracting, despite the high interest rates, EC experts said.
In the external sector, the deteriorating global economic and foreign trade environment is expected to depress Russia’s export and import growth.
Source