World Bank Downgraded a Forecast of Russian Economy Growth
OREANDA-NEWS. The World Bank predicted a slowdown in Russia’s economy in 2019 from 1.2 percent, expected in June, to 1.0 %.
This is the second time during current year when it lowers the forecast for Russian gross domestic product (GDP). Economists explain it with various factors, including poor investment, oil pollution in the Druzhba pipeline, and the sanctions of Western countries against Russia.
At the same time, Russian Ministry of Economic Development expects that in 2019 GDP will grow by 1.3 percent.
Vyacheslav Abramov, the director of the sales office of Russian company BKS Broker, told jouranlists that slowing the growth of the Russian economy to 1 % in 2019 is a reasonable forecast. “This is due to the slowdown in global economic growth, the trade wars of the United States and China, as well as a low level of investment in the private sector due to high risks connected with possible new sanctions,” Abramov said.
As for the global economy, the World Bank lowered its growth forecast this year from 2.6 to 2.5 percent. Experts note that this decline is taking place because of economic policy uncertainty and a reduction of global investment and trade.
Economic growth, according to analysts, will stabilize by 2021, reaching 2.6 percent if there are no major shocks.
The World Bank has worsened forecasts for the main economies of the world: the United States, Europe and China. So, in the US GDP is expected to decline from 2.5 to 2.3 percent, in Europe from 1.2 to 1.1 percent. In China, a slight slowdown in economic growth is expected: 6.1 percent, 0.1 percent below the June forecast.