The World Bank has improved its economic outlook for Russia, predicting that the country’s GDP will grow 3.2% in 2021. In March, the bank’s analysts had put Russian economic growth at 2.6% this year.
The forecast for 2022 has not changed, with gross domestic product growth expected to be 3.2%.
According to the report, the baseline scenario assumes a gradual decline in Covid-19 infections.
The World Bank’s projection is better than that of the Russian Ministry of Economic Development and Trade, which expects the nation’s GDP to grow 2.9% by the end of the year.
“According to our forecast, the recovery in economic activity, which will be based on the growth of household consumption and investment growth, will be facilitated by the revival of the global economy, higher oil prices and soft monetary conditions in the domestic market in 2021,” the World Bank economists said.
Apurva Sanghi, lead economist for Russia with the World Bank, said that the country’s government has done a lot “to ensure macro-fiscal stability, which has led to an improvement in the fiscal position.”
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