Russian Economy Set to Surge in 2024 Despite Sanctions

The Russian economy is projected to grow by 3.9% in 2024, surpassing previous estimates, largely due to increased state spending and strong capital investment. Finance Minister Anton Siluanov highlights fiscal stimuli as a contributing factor. Despite Western sanctions, economic data points to sustained growth driven by military production.

MOSCOW, Aug 30 (Reuters) - The Russian economy is expected to grow by 3.9% in 2024, exceeding prior forecasts, due to augmented state expenditure, Finance Minister Anton Siluanov announced on state television. The updated 2024 forecast follows robust economic performance in the first half of the current year.

Minister Siluanov credited faster-than-expected economic development to fiscal measures implemented over recent years. The government had earlier estimated this year's growth at 2.8%, whereas last year, the economy expanded by 3.6%.

Preliminary data indicated a 4.6% growth rate in the first half of the year, a significant rise from 1.8% during the same period last year. This spike is attributed to strong capital investments by the private sector. The latest forecast suggests a stabilization in growth rates for the latter half of the year, aiding the central bank's efforts to curb economic overheating.

(With inputs from agencies.)