Russia's Finance Minister, Anton Siluanov, predicts a minimum GDP growth of 1.5%

Russia's economy has experienced a slight slowdown in growth rates, as indicated by recent data and forecasts. The International Monetary Fund (IMF) has lowered its prediction for Russian economic growth in 2025 to 0.9%, a significant decrease from its previous forecast of 1.5%.

The Ministry of Finance, under the leadership of Minister Anton Siluanov, is cooperating closely with the Central Bank to formulate budget and monetary policies for the next three years. Siluanov has noted that a balanced budget for 2026-2028 would serve as a basis for easing monetary policy.

The economic growth rates for the second quarter and the first quarter of 2025 are both below the Minister of Economic Development's prediction of at least 1.5% for the whole year. The second quarter saw a growth of 1.1%, while the first quarter registered a slightly higher 1.4%. These rates are also below the 2% growth rate that the Bank of Russia aims for in the long term and the current average annual growth rate of 2.5% since 2017.

The Bank of Russia, led by Governor Elvira Nabiullina, has taken steps to address this slowdown. On July 25, the bank reduced the key rate by 2 percentage points, to 18%. This is the second consecutive decision to lower the key rate, aimed at stimulating economic growth.

Despite the lower growth rates, the Ministry of Economic Development remains optimistic. The ministry's April forecast predicts GDP growth of 2.5% by the end of 2025. The Bank of Russia's medium-term forecast, however, predicts GDP growth of 1-2% this year and 0.5-1.5% next year.

It is worth noting that, as of the current search results, there is no publicly confirmed successor to Nabiullina relevant to recent factors and forecasts for the Russian economy.

The economic growth rates for the second quarter and the first quarter of 2025, if sustained, could potentially impact the government's goal of achieving a balanced budget for 2026-2028. Vladimir Putin, the Russian President, has expressed his support for the Ministry of Finance's approach to maintaining economic growth rates.

In conclusion, Russia's economy is facing a slight slowdown, with growth rates for the second quarter and the first quarter of 2025 falling below initial forecasts. The government and the Central Bank are taking steps to address this situation, including adjusting monetary policies and lowering the key rate. Despite the challenges, the Russian authorities remain committed to achieving a balanced budget for the future and maintaining economic growth.

Russia's Finance Minister, Anton Siluanov, predicts a minimum GDP growth of 1.5%