The World Bank has worsened the forecast for Russia’s GDP growth in 2017.
Now the international organization assumes that the volume of the economy would increase by 1.3 percent. Previously, it forecasted an increase of 1.5 percent. This is evidenced by the data published in the report “The Russian Economy: from Recession to Recovery”. “It is expected that the main factor in the revival of the economy will be a positive effect from the conditions of foreign trade caused by an increase in oil prices, alongside with more stable macroeconomic conditions” – the experts of the World Bank believe.
An increase of 1.4 percent is forecasted for 2018 and 2019. Expectations have also worsened: in the previous report these indicators were 1.7% and 1.8%, respectively. The World Bank believes that the source of growth will be the revival of consumer activity of Russians in the next two years, and the investments will play a supporting role. On May 22 the Head of the Ministry of Economic Development Maksim Oreshkin stated that the economic situation in Russia in the first quarter gives grounds to expect that GDP growth will amount to two percent in 2017.
Author: Anna Dorozhkina