EBRD lowers Russia’s 2015 GDP decline forecast to 4.8%

MOSCOW, Jan 19 (PRIME) -- The European Bank for Reconstruction and Development (EBRD) has worsened its forecast for Russia’s gross domestic product’s (GDP) decline in 2015 to 4.8% from 0.2%, the bank said in a statement on Monday.

“The halving of oil prices has added to problems in Russia, whose economic growth was already slowing down amid uncertainty and weak investor confidence after the imposition of sanctions in 2014,” EBRD said.

The bank also pointed out that such a rapid decrease in oil prices also exerts pressure on other energy-exporting countries and emerging countries, which economies are closely tied to Russia.

“Even this forecast is subject to considerable risks,” EBRD quoted Hans Peter Lankes, its acting chief economist, as saying.

Such risks include the impact of any further falls in the oil price, a further escalation in the crisis between Russia and Ukraine and a possible increase in uncertainty in the Eurozone, he said.

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