IMF reduces its forecast for Russia's GDP growth in 2025 to 0.6%.

The International Monetary Fund (IMF) has revised Russia's gross domestic product (GDP) growth forecast for 2025 to 0.6%, down from 0.9%, and below the official government forecast of 1%. Russia's economy, facing significant sanctions from Western countries, is projected to decelerate substantially from the 4.3% growth in 2024, primarily due to the high key interest rate set by the central bank to tackle inflation. The current key rate is at 17%, and some business leaders argue that a rate between 12% and 14% is necessary to stimulate economic growth. Initial data released in August indicated that Russia's economy expanded by 1.1% in Q2 2025, a significant slowdown from the 4% growth in the same period the previous year.