The International Monetary Fund (IMF) said in a press release on Wednesday that it downgraded its forecast for Russia's gross domestic product (GDP) growth in 2019 to 1.2 percent, raising the forecast for 2020 to 1.9 percent
MOSCOW (Pakistan Point News / Sputnik - 17th July, 2019) The International Monetary Fund (IMF) said in a press release on Wednesday that it downgraded its forecast for Russia's gross domestic product (GDP) growth in 2019 to 1.2 percent, raising the forecast for 2020 to 1.9 percent.
In January, the IMF downgraded its forecasts for the growth of the Russian economy in 2019 and 2020 by 0.2 and 0.1 percentage points respectively, to 1.6 percent and 1.7 percent respectively. The head of the IMF mission in Russia, James Roaf, said in May that the fund would present a new forecast within a month or two.
"Growth is projected at 1.2 percent in 2019, reflecting a weak first quarter estimate, lower oil prices and the impact of the higher VAT [value-added tax] rate on private consumption. At the same time, GDP growth should be supported by an increase in public sector spending in the context of the national projects announced in 2018. Inflation has begun to fall and is expected to return to the 4 percent target by early 2020," the IMF said.
According to a table attached to the press release, the IMF expects Russia's GDP growth in 2020 to reach 1.9 percent.
The fund noted that the Russian economy continued to show moderate growth thanks to sound macroeconomic policies, despite structural constraints and sanctions. According to the IMF, Russia's GDP grew by 2.3 percent in 2018, while investment also showed a moderate increase year-on-year.
"After reaching historical lows earlier in 2018, inflation picked up in the second half of the year," the IMF specified.
