LONDON, Nov 6 (PRIME) -- The European Bank for Reconstruction and Development (EBRD) has reduced its outlook on Russia’s gross domestic product (GDP) growth to 1.1% from 1.5% in 2019, and to 1.7% from 1.8% in 2020, as seen by PRIME in the bank’s Regional Economic Prospects report on Wednesday.
Russia’s economic growth has been seized by decreasing external demand, falling crude prices and continuing sanctions in 2019, the EBRD said.
“One of the reasons to decrease the outlook for 2019 is a delay in implementation of the national investment projects, lower oil prices, and a hike of value-added tax (VAT) in January,” Chief Economist of the EBRD Beata Javorcik told PRIME.
Sanctions, low crude prices and external and internal shocks, which may weaken the ruble and hurt the banking sector, are among the major challenges in 2020, she added.
Javorcik also said that the EBRD does not expect a global financial crisis in 2020, but expects the global economy to slow down on the back of ongoing trade wars.
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