Russia’s economy expands despite sanctions – World Bank

Published time: 9 Jan, 2019 10:49

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Moscow © Sputnik / Anton Denisov

The growth rate of the Russian economy increased last year, while inflation remained low, the World Bank said in its 2019 World Economic Outlook.

“Although economic sanctions tightened, Russia experienced relatively low and stable inflation and increased oil production. As a result of robust domestic activity, the Russian economy expanded at a 1.6 percent pace in the year just ended,” said the report.

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The World Bank pointed out that Russia and other oil exporters “maintained steady growth in 2018, supported by a rise in oil prices.”

In Russia, “growth has been resilient, supported by private consumption and exports,” the bank said, projecting a short-term slowdown this year to 1.5 percent.

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In 2020 and 2021, the bank expects an increase in the growth rate of Russia’s GDP to 1.8 percent.

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In October, the International Monetary Fund (IMF) raised its forecast for Russia’s GDP growth in 2019 to 1.8 percent. IMF chief economist Maurice Obstfeld said that the positive impact of rising world oil prices on the Russian economy would outweigh the negative effect of Washington’s sanctions.