BOFIT Weekly Review 2016/15
IMF lowers its forecast for Russian GDP
The IMF’s newest World Economic Outlook projects a nearly one-percentage point deeper contraction in Russian GDP in 2016 than in its January forecast. The IMF still expects the Russian economy to return to low growth next year.
The World Bank came out with a similar projection last week, but sees a slightly stronger recovery path than the IMF forecast. Most forecast risks, however, are on the downside. The combined effects of US and EU sanctions, as well as Russian countersanctions are weakening the economy’s development. The World Bank’s forecast sees Russian economic growth accelerating in 2017 to 2 % if general uncertainty abated and sanctions were lifted.
Forecasts of Russian GDP growth, % change
