OREANDA-NEWS  The World Bank (WB) forecasts a 1.4% increase in Russia's GDP in 2025 and a 1.2% increase in 2026, according to its June Global Economic Outlook report.

Thus, the organization confirmed the forecasts announced in April.

The Russian economy will also grow by 1.2% in 2027, the World Bank expects.

According to World Bank estimates, Russian GDP growth accelerated to 4.3% in 2024 from 4.1% a year earlier.

"The noticeable decrease in growth rates this year is mainly due to a weakening of private consumption and government spending due to the delayed effects of monetary policy tightening, as well as sluggish growth in real wages and a decline in government-backed corporate lending," the report says.

The decline in global energy prices will limit the growth rate of the Russian economy and budget revenues, World Bank experts say. They forecast a modest increase in Russian exports and expect a slowdown in import growth amid weakening consumer demand and tougher payment sanctions.

"Labor shortages, exacerbated by negative demographic trends, as well as limited access to markets and technology, are expected to continue to limit the long-term growth potential of the Russian economy," the report says.