FX.co ★ IMF Cuts Russia’s 2025 GDP Growth Forecast to 0.6%

The International Monetary Fund (IMF) has revised its projection for Russia's gross domestic product (GDP) growth in 2025, now anticipating a rise of just 0.6%, a decrease from the previous forecast of 0.9%, and trailing the official government estimate of 1%. After experiencing a 4.3% growth in 2024, Russia's economy—currently subject to significant Western sanctions—is expected to experience a marked deceleration. This anticipated slowdown is largely attributed to the elevated key interest rate set by the central bank as part of its inflation control measures. At present, the key interest rate stands at 17%, although some business leaders advocate for a reduction to between 12% and 14% to stimulate economic revival. Preliminary figures released in August indicated a 1.1% growth in Russia's economy during the second quarter of 2025, representing a notable reduction from the 4% growth recorded in the same quarter of the preceding year.