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Development Bank expects continued economic growth in Russia


Russia’s former defense minister Sergei Shoigu visits a factory in the Omsk region that makes tanks and flamethrowers. Large public spending in the defense industry helps lift Russia’s economic growth. Photo: Russia’s Ministry of Defense / AP / NTB

Of NTB | 15.05.2024 10:09:35

Economy and business: The latest forecast from the EBRD suggests that Russia’s gross domestic product (GDP) will increase by 2.5 percent.

This is lower than last year, but higher than the EBRD’s previous forecast. One of the reasons for the upward adjustment is extensive Russian spending on the defense industry and the war in Ukraine.

– I think it was unrealistic to expect that sanctions against Russia would lead to a deep economic and financial crisis, as many had hoped, says the EBRD’s chief economist Beata Javorcik to the AFP news agency.

She adds that Russia has “refocused the economy on the war effort”.

– So that leads to faster growth. But does the growth lead to better living conditions for the country’s population? It is doubtful, says Javorcik.


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