Support The Moscow Times!

World Bank Downgrades 2019 Growth Forecast for Russia

Kevin Lamarque / Reuters

The World Bank has said it expects Russia’s economy to grow by 1.5 percent this year instead of the previously forecast 1.8 percent.

After two years of decline brought by Western sanctions and a collapse in global oil prices, Russia’s economy returned to a growth rate of 1.5 percent in 2017. Economy Minister Maxim Oreshkin projects overall GDP growth for Russia of 1.3 percent in 2019.

“In Russia, growth has been resilient, supported by private consumption and exports,” the World Bank writes in a report published Tuesday. “However, momentum has slowed, reflecting policy uncertainty, recent oil price declines, and renewed pressures on currency and asset prices.”

The U.S.-based bank estimated growth of 1.6 percent in Russia in 2018, and projects 1.8 percent growth in 2020 and 2021.

Emerging market economies are expected to grow at 4.2 percent this year, with advanced economies expected to grow at 2 percent, the World Bank said in the report.

The growth of the global economy is expected to slow to 2.9 percent in 2019 compared with 3 percent in 2018, the World Bank said, citing elevated trade tensions and international trade moderation.

Reuters contributed reporting to this article.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more