World Bank Leaves Russia's Growth Forecast For 2023, 2024 Unchanged - Report

The World Bank left unchanged the economic growth forecast for Russia in this and next year, saying it will contract by 0.2% in 2023, but will turn positive at 1.2% in 2024

WASHINGTON (UrduPoint News / Sputnik - 06th June, 2023) The World Bank left unchanged the economic growth forecast for Russia in this and next year, saying it will contract by 0.2% in 2023, but will turn positive at 1.2% in 2024.

"Output in Russia is projected to contract slightly, by 0.2 percent in 2023, a 3.1 percentage point upgrade from the January 2023 forecast," the World Bank said in its Global Economic Prospects report on Tuesday.

The bank expects that contractions in export, along with sanctions, weak domestic demand, and other challenges, will continue to apply pressure on economic activity.

"In 2024, growth is expected to turn positive, but remain modest at only 1.2 percent, which is lower than the average pace of growth in the 2010s," the report added.

At the same time, the Russian economy will face less contraction than anticipated in January because of oil production, mainly due to more resilient than expected oil production and higher than expected growth momentum from 2022, according to the report.

The bank also noted that the continued flow of energy exports allowed Russia to improve the situation in its economy.