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World Bank lowers Russia’s GDP growth outlook

The World Bank’s updated outlook predicts low rates of Russia’s GDP growth expected at 0.3% in 2015 and 0.4% in 2016

© EPA/MATTHEW CAVANAUGH

MOSCOW, September 24. /ITAR-TASS/. The World Bank has lowered its outlook for Russia’s GDP growth amid persisting geopolitical tensions, the international financial institution said in a report on Wednesday.

The outlook was lowered to 0.5% in 2014 from the previous forecast of 1.1% based on the assumption that geopolitical tensions would subside.

The World Bank’s updated outlook predicts low rates of Russia’s GDP growth expected at 0.3% in 2015 and 0.4% in 2016.

The World Bank said that a return to higher growth in Russia would depend on private investment growth and an increase in consumer sentiment.

The World Bank’s GDP outlook for Russia coincides with the Russian Economic Development Ministry’s forecast for this year but is lower for 2015-2016. Russia’s Economic Ministry predicts GDP growth at 1.2% in 2015 and 2.3% in 2016.

The World Bank’s baseline scenario for Russia excludes a further escalation of geopolitical tensions or additional sanctions.

The World Bank also predicts Russia’s inflation to reach 8% in 2014 before slowing down to 6-7% in 2015.

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