World Bank lowers forecast for Russia’s GDP

The World Bank has downgraded its forecast for Russia’s GDP growth to 3.3% from 3.6% in 2013in its latest report “Russian Economic Report: Recovery and Beyond.” The GDP forecast was revised for five reasons. Firstly, the expected price of oil has been lowered to $102 from $105.8 a barrel this year. Secondly, the foreign economic environment is not as favorable as expected. Thirdly, economic activity in Russia has declined. Fourthly, inflation is rising more quickly than originally envisaged. And lastly, the World Bank says investment growth is weak. Russia’s gross domestic product growth for 2014 is expected to stand at 3.6%, the organization forecasts. RT