April 23 Reuters Russia39;s economy ministry improved its expectations for 2024 gross domestic product GDP growth to 2.8 from 2.3 in new forecasts published on Tuesday, while envisaging a weaker rouble and shrinking current account surplus in the years to come.

Russia39;s economic rebound from a 2022 slump relies heavily on statefunded arms and ammunition production as Moscow prosecutes its war in Ukraine, masking problems that are hampering an improvement in Russians39; living standards.

The International Monetary Fund this month raised its 2024 forecast for Russia39;s GDP growth to 3.2 from the 2.6 projected in January, pointing to strong government spending and investment related to the war, as well as higher consumer spending in a tight labour market and strong oil export revenues in spite of Western sanctions.

Economy Minister Maxim Reshetnikov, speaking at a government meeting, said the main factor behind economic growth was domestic consumer and investment demand.

The economy ministry expects GDP growth of around 2.3 in 20252026, while the rouble is forecast to make a steady decline to trade at an average of 101.2 to the dollar in 2026, compared with current levels around 93.

Russia expects oil prices to fall, the forecast showed, and the export price of Russian oil until 2027 is seen at 65 a barrel. Russia39;s Urals crude currently trades at around 79 per barrel.

Russia39;s success in circumventing the West39;s oil price cap, through redirecting exports to…