World Bank raises Russia’s 2019 GDP growth outlook to 1.2%

MOSCOW, Dec 4 (PRIME) -- The World Bank has raised its forecast for Russia’s gross domestic product (GDP) growth in 2019 to 1.2% from 1% projected in October, amid accelerated economic growth in the third quarter, the bank said on Wednesday.

The bank said Russia’s GDP grew 1.7% on the year in July–September after weak dynamics in the first half of the year due to softening of the monetary policy.

The Russian Economic Development Ministry’s official forecast encompasses economic growth of 1.3% in 2019.

The World Bank also lowered its forecast for Russia’s GDP growth in 2020 to 1.6% from 1.7% expected in October and maintained the forecast for 2021 at 1.8%.

Softening of the monetary policy and higher expenditures on national projects will help to revive the economy, the bank said.

The bank also said Russia remains vulnerable to the influence of external shocks through foreign trade, financial channels and commodity markets, as well as to introduction of possible additional economic sanctions.

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