WB cuts Russia’s 2019 GDP growth forecast to 1.2% from 1.4%

MOSCOW, Jun 5 (PRIME) -- The World Bank (WB) has reduced its 2019 Russia’s economic growth forecast to 1.2% from 1.4% following falling oil production, the bank said in a report late on Tuesday.

A tougher monetary policy and a higher value-added tax (VAT) introduced at the beginning of 2019 will weaken economic growth, the WB said.

Forecasts for 2020 and 2021 remained unchanged at 1.8% in spite of sluggish dynamics of private investment.

Russia’s economy showed the highest growth for the previous six years of 2.3% in 2018 in spite of tough economic sanctions and pressure on financial markets. The expansion was supported by high oil prices, contribution of net exports, and one-time factors like construction projects in the energy sector and the FIFA 2018 World Cup, the WB said.

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