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Forecasts show Russia may overtake Japan in terms of GDP growth by 2030

Andrey Belousov opined that the Russian Central Bank’s key rate would remain at a high level so far, declining to 6-7% by 2027

MOSCOW, May 8. /TASS/. The current parameters of the macro forecast show Russia may overtake Japan in GDP growth by 2030, acting First Deputy Prime Minister Andrey Belousov said.

"The president gave us a task to expand the supply economy, to reach fourth place in the world by 2030, overtaking Japan. Our international friends, primarily from the IMF, who carry out international comparisons - they, of course, heard this order from the president to the future government and immediately lowered the Russian GDP by 200 bln [dollars]. With the forecast parameters that we see now, we should still overtake Japan in 2030," Belousov said.

In his May decree, Russian President Vladimir Putin set the task of ensuring the Russian GDP growth rate is higher than the world average and reaching fourth place in the world in terms of GDP at purchasing power parity (PPP) no later than 2030. At the end of 2023, Russia's GDP grew by 3.6%.

Belousov also added he believes that the Russian Central Bank’s key rate will remain at a high level so far, declining to 6-7% by 2027. "The economy should adjust to structural changes that are currently underway and that will take place. When I say to what, it is clearly the high key rate first of all, which will persist one way or another. However, we all hope that it will decline following inflation, though it will still be high, reaching about 6-7% by 2027," he said.

The Central Bank’s key rate currently stands at 16% per annum. The regulator upgraded earlier its outlook on the average key rate to 15-16% for 2024 (up from 13.5-15.5% previously), and to 10-12% for 2025 (up from 8-10%). The outlook on the average key rate for 2026 remained unchanged at 6-7%.