The International Monetary Fund (IMF) once again forecast low year-on-year growth for Russia in 2025 – projecting 1.5% of real GDP for the country, according to this April’s World Economic Outlook.
Russia’s economy is experiencing a natural slowdown after a robust growth, and it is a result of policy tightening, with high interest rates in Russia increasing the cost of borrowing and Russia having to raise taxes to finance its budget.
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Current oil prices are also to blame – Brent crude oil is trading at approximately $67 per barrel, as of April 23, Reuters reported. The same day last year, Brent’s price was around $88 per barrel, AP news wrote.
“It is also due to lower oil prices that have come about as a response to a round of tariffs and also the uncertainty about global growth,” Deputy Director of the IMF’s Research Department Petya Koeva Brooks said on a briefing at the institute.
Koeva Brooks said she expected Russia’s medium-term growth to be “relatively weak.”
The IMF’s figures for Russian economic growth in 2024 were estimated at 4.1% of real GDP, according to the updated IMF estimates. For 2026, the IMF expects Russia’s economy to grow by only 0.9%.
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