ZCZC
BCN-29
RUSSIA-ECONOMY-INFLATION-WORLDBANK
Inflation in Russia in 2018 remained low, economy grew despite sanctions –
World Bank
WASHINGTON, January 9, 2019 (BSS/TASS) – The growth rate of the Russian
economy increased in 2018, while inflation remained low, the World Bank said
in a report released on Tuesday.
“Although economic sanctions tightened, Russia experienced relatively low
and stable inflation and increased oil production. As a result of robust
domestic activity, the Russian economy expanded at a 1.6% pace in the year
just ended,” according to “Global Economic Prospects. Darkening Skies,” the
January 2019 World Economic Outlook by the World Bank.
In their June report, the World Bank analysts forecast the growth of
Russian economy at 1.5% in 2018, same as in 2017.
According to the World Bank, Russia and other oil exporters “maintained
steady growth in 2018, supported by a rise in oil prices.”
However, the authors of the report predict a short-term slowdown in the
growth of the Russian economy in 2019 to 1.5% (lowering the June forecast by
0.3%). The World Bank expects a slowdown in economic growth in the countries
of the eastern part of the Europe and Central Asia region. In 2020 and 2021,
the World Bank expects an increase in the growth rate of Russia’s GDP to
1.8%.
In October, the International Monetary Fund (IMF) raised its forecast for
Russia’s GDP growth in 2019 by 0.3%, to 1.8%. The IMF maintained its forecast
for GDP growth in 2018 at 1.7%. At the same time, the IMF expects inflation
in Russia in 2018 at the level of 2.8% due to moderately tight monetary
policy.
In October, IMF chief economist Maurice Obstfeld said that the positive
impact of rising world oil prices on the Russian economy would outweigh the
negative effect of sanctions the U.S. imposed against Russia.
BSS/TASS/HR/1250