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World Bank downgrades Russia’s economic outlook for 2015

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14.01.2015

WASHINGTON, January 14 /TASS/ -- The World Bank has downgraded its expectations for Russia’s economy in 2015, saying that the country’s gross domestic product (GDP) is expected to decline by 2.9%

The bank said in the Global Economic Prospects (GEP) report published on Tuesday that sustained low oil prices will weaken economic activity in major exporting countries, like Russia, while oil importing countries, including China, will be the big winners.

Russia’s economy will get “barely back into positive territory in 2016 with growth expected at 0.1%,” the report says. The World Bank earlier projected Russia’s GDP to contract by 0.7% in 2015 and increase by 0.3% in 2016.

The report said the tensions between Russia and Ukraine, the associated economic sanctions, capital flight and limited access of Russian companies to the international capital markets are the key factors behind the poor economic outlook.

Tass

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