Russia’s economic growth will slow in the second half of 2023, central bank governor Elvira Nabiullina warned Friday, as Moscow grapples with labour shortages, sanctions and lower export revenues.
Russian officials have largely shrugged off the economic effects of Moscow’s dragging offensive in Ukraine, despite persistently high inflation and a weaker ruble.
“We expect growth rates to be more moderate in the second half of the year,” Nabiullina said at a press conference after the bank raised its key rate for the third time in two months.
“This is natural after a period of rapid recovery growth. The rate of economic growth is limited by the availability of resources, primarily labour,” she said.
She said the bank was keeping its growth forecast between 1.5-2.5 percent in 2023, but lowering it for 2024 to 0.5-1.5 percent maximum.
The central bank announced Friday it was raising its key rate by one percentage point to 13 percent, citing a weaker ruble and inflation, which has stayed above the bank’s four-percent target.
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