World Bank improves Russia’s 2021 GDP growth forecast to 3.2%

MOSCOW, May 25 (PRIME) -- The World Bank has improved its forecast for Russia’s gross domestic product (GDP) growth in 2021 to 3.2% from 2.9% under a basic scenario, which envisages weakening of the coronavirus pandemic, the institution said in a report on Tuesday.

The GDP growth forecast for 2022 was affirmed at 3.2%, and for 2023 at 2.3%.

Under an optimistic scenario, Russia’s GDP growth will speed up to 3.8%, 4.8% and 3.3% in 2021, 2022 and 2023, respectively.

The bank said that Russia’s processing, hospitality and retail industries and construction, as well as the healthcare and social spheres suffered most of all during the pandemic and that labor migration should recover until the end of 2021.

The average oil price forecast for 2021 and 2022 was increased to U.S. $56 and $60 per barrel, respectively, from $44 and $50 per barrel.

Russia’s poverty level will decrease to 11.4% by the end of 2021 from 12.1% in 2020.

The bank also said that recent U.S. sanctions against Russia’s state debt are not dangerous for the state’s financial stability, because Russia has considerable reserves and the share of non-residents in the securities is not significant.

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