Left Menu
Development News Edition

Russian economy continue modest growth supported by oil prices: World Bank


Russian economy continue modest growth supported by oil prices: World Bank
The World Bank lifted its economic growth projection for this year to 1.6 per cent from 1.5 per cent forecast in May. It expects the gross domestic product to grow by 1.5 per cent in 2019 and by 1.8 per cent in 2020. (Image Credit: Twitter)

Economic growth in Russia will be modest over the next two years with a possible expansion of Western sanctions and high geopolitical tension making for an unfavourable outlook, the World Bank said on Tuesday.

But Russia's fundamentals, including its international reserves, would help it to absorb "external shocks", it said in a regular report.

The World Bank lifted its economic growth projection for this year to 1.6 per cent from 1.5 per cent forecast in May. It expects the gross domestic product to grow by 1.5 per cent in 2019 and by 1.8 per cent in 2020.

"In the absence of a sharp escalation of geopolitical tensions, we expect the Russian economy to continue modest growth supported by relatively high oil prices," it said.

But circumstances for the general outlook were not favourable.

"Unfavourable factors stem from the potential expansion of sanctions and continued elevated geopolitical tensions, which translate into high uncertainty that dampens domestic demand," the international financial institution said.

Russia's international reserves, low external debt levels and its macroeconomic framework should help "limit exposure to external volatility and absorb external shocks."

The banking sector in Russia, which saw dozens of banks losing licences in the past few years and some bailouts of major banks by the state, remains relatively weak, the World Bank noted.

That said, the banking system had sufficient liquid foreign currency assets to repay its maturing external debt, the World Bank said.

(With inputs from agencies.)


TRENDING

OPINION/BLOG/INTERVIEW

JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Videos

Latest News

Eagles' Johnson ruled out, four others are questionable

Philadelphia Eagles star right guard Lane Johnson has been ruled out of Sundays game against the Washington Redskins due to an ankle injury. Johnson suffered a high sprain of his left ankle during Mondays game against the New York Giants an...

UPDATE 1-Turkish drones escorting drill ships to fly from Turkish Cypriot airport -report

The breakaway Turkish Cypriot cabinet has designated an airport on the disputed island as a base for Turkish drones escorting ships seeking hydrocarbons in the eastern Mediterranean, a news agency said, a move likely to increase tension wit...

UPDATE 3-U.S. Supreme Court takes up Trump bid to shield financial records

The U.S. Supreme Court on Friday agreed to hear President Donald Trumps appeals in three separate cases to prevent his financial records, including tax returns, being handed over to Democratic-led House of Representatives committees and a N...

NEWS SCHEDULE AT 10 p.m. GMT/6 a.m. SGT

Here are the top stories and upcoming coverage plans for Reuters text service as of 10 p.m. GMT6 a.m. SGT. For a full schedule of news and events, go to our editorial calendar on Reuters Connect httpswww.reutersconnect.complanning. TOP STOR...

Give Feedback