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World Bank Cuts Russia's 2019 Economic Forecast

Andrei Gordeyev / Vedomosti / TASS

The Russian economy will grow by 1.2 percent in 2019, the World Bank said in at least the third downgrade Tuesday.

The Washington-based institution previously downgraded its forecast of Russia’s growth from 1.8 percent to 1.5 percent in early 2019, then again to 1.4 percent in April.

Its latest revision — made in the twice-yearly Global Economic Prospects report — is still more optimistic than Russia’s own projection of 0.8 percent.

The curtailed expectations parallel the World Bank’s downgraded forecast for global growth from 2.9 percent to 2.6 percent.

Real GDP growth exceeded expectations in 2018, reaching 2.3 percent despite international sanctions. The bank had said the rise was largely due to "one-off effects in [non-residential] construction" and the football World Cup that Russia hosted last summer.

The World Bank still projects the Russian economy to grow by 1.8 percent next year and in 2021.

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