UN: Russian economy to start growing again in 2024

After an insignificant decline in 2023, the Russian economy will start growing again, UN analysts said in their report titled "World Economic Situation and Prospects".

"The Russian economy is projected to marginally shrink in 2023, before returning to a low medium-term growth path in 2024," the report said.

The report does not provide any forecast figures for the Russian economy. As negative factors, UN analysts mentioned the reduction in Russia's income from exports in the first quarter of 2023.

A switch in energy supplies from Europe to Asia was supposed to prevent a drop in income, but it became impossible to redirect all of Russia's export volumes. A stricter EU control over Russian imports of sanctioned technologies through third countries could lead to a reduction in production investment.

To crown it all, the ongoing conflict in Ukraine and ensuing economic problems continue to affect the economic prospects of the Commonwealth of Independent States (CIS) and Georgia, the report also noted.

It is worthy of note that the European Commission improved its forecast for Russian GDP. The European authorities thus expect Russia's GDP to decline by 0.9 percent — not by 3.2, as predicted in the fall of 2022. In 2024, Russia's GDP will grow by 1.3 but not 0.9 percent, experts say.