Russia may cut growth forecast again to 1.2%, news agencies say

MOSCOW, Sept 1 (Reuters) - Russia may cut its 2025 economic growth forecast to 1.2%, three Russian news agencies quoted a source as saying on Monday - a second potential downgrade in the space of less than a week.

The agencies, including state-owned TASS and RIA Novosti, described the source as an official familiar with preparations for next year's budget, which by law should be submitted to parliament before October 1.

As part of this process, the Economy Ministry prepares a set of macroeconomic forecasts, including for GDP growth, the rouble and inflation, on which the draft budget is based.

The report follows a statement by Finance Minister Anton Siluanov on August 27 where he said that the government sees economic growth slowing to 1.5% this year, far below the earlier 2.5% forecast.

"The cooling is under way, the economy is slowing down at a faster pace than expected. If previously we expected a growth rate of 1.5%, now it is already 1.2%," the agencies quoted the source as saying.

The source also told the agencies that Russia's budget deficit for 2025 may "slightly" exceed the planned level of 1.7% of GDP. The latest deficit data for January-July showed the deficit at 2.2% of GDP.

"The resource base is also shrinking, so we will mobilise resources this year and, accordingly, will prepare next year's budget based on this," the agencies quoted the source as saying.