The Russian Central Bank has maintained it projection for the growth of the country's GDP, which, according to the regulator,
MOSCOW (Pakistan Point News / Sputnik - 26th October, 2018) The Russian Central Bank has maintained it projection for the growth of the country's GDP, which, according to the regulator, will stand at the level of 1.5-2 percent in 2018 and 1.2-1.7 percent in 2019, the bank said in a press release on Friday, adding that in subsequent years the growth rate might increase.
"The Russian economy is growing at rates close to its potential. This September saw a rise in industrial output; sectoral output trends remained mixed, however. Consumer demand expanded at moderate rates, mainly on the back of non-food sales. Bank of Russia estimates show that investment growth was continued in the third quarter. The Bank of Russia keeps unchanged its 2018 annual GDP growth forecast of 1.5-2%," the bank said.
The Central Bank's projection for the country's mid-term growth prospects has not changed significantly, the press release indicated. The bank, however, indicated that the planned VAT hike might constrain the business activity, mainly at the beginning of the next year.
"The newly attracted budgetary funds will be used to boost government spending, including spending on investments, as early as 2019. As a result, according to the Bank of Russia forecast, GDP growth in 2019 will range between 1.2% and 1.7%. The following years might see higher growth rates as the planned structural measures are implemented," the bank said.
According to the Central Bank's current projection, the Russian economy's growth is expected to total 1.8-2.3 percent in 2020 and further 2-3 percent in 2021.
