The world Bank raised its forecast for growth of Russian economy in 2018

© RIA Novosti / Vladimir Traveloperator in photobacteria rubles. Archival photoThe world Bank raised its forecast for growth of Russian economy in 2018© RIA Novosti / Vladimir Traveloperator the image Bank

The world Bank raised its forecast for growth of Russian economy in 2018 to 1.6% against 1.5% previously, and the next year the Bank expects a slowdown in Russia’s GDP to 1.5% vs previous 1.8 percent, according to a published on Tuesday report by the international organization on the Russian economy.

The WB forecast the GDP growth of the Russian Federation for 2020 remained unchanged – it is expected to reach 1.8%.

«The prospects for economic growth in Russia in 2018 to 2020 remain low: the forecasted growth rates range from 1.5% to 1.8%,» the document reads. «This suggests that the rate of growth, Russia will lag behind the average of emerging market countries and emerging market economies (4.6 percent) and will overtake countries with high income (1.7 percent) in the year of 2020», — analysts of the organization.

A favorable factor for economic growth in Russia in coming years, according to the authors of the report, may be an increase in oil prices above the projected level. Adverse factors associated with the possible extension of sanctions and continued geopolitical tensions.

According to the forecast, in 2019 it is expected a slowdown of economic growth, despite the expected growth of investment in infrastructure projects. The authors of the report attribute this to a slowdown in demand amid slower growth in real wages.

In 2020 the world Bank expects acceleration of GDP growth in Russia to 1.8%. According to this forecast, growth in household consumption will rebound after a decline in 2019. In addition, if created by government development Foundation establish itself as an effective state tool, investments in fixed capital will increase.

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