"One major drag is Russia's exorbitantly high interest rate, currently 21%, which is choking off private investment. The auto industry and mechanical engineering sectors are particularly hard hit."
"Germany's Kiel Institute for the World Economy projects GDP growth of only 1.5% for 2025 and just 0.8% for 2026. Even the Russian central bank is expecting a slowdown, sticking to its lower forecast of between 1% and 2% growth for 2025."
Despite Russia's GDP increasing by 4.1% in 2023 and 4.3% in 2024, growth is anticipated to decline. Economists predict a reduction in Russia's GDP growth rate to 2%. The German Kiel Institute forecasts even lower growth, estimating 1.5% for 2025 and 0.8% for 2026. The Russian central bank also projects moderate growth from 1% to 2% in 2025. High interest rates are significantly hindering private investment, particularly in the auto and mechanical engineering sectors, affecting overall economic performance.
Read at www.dw.com
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