The World Bank Worsened the Forecast of the Global Economic Growth and Russia’s GDP

Global economic growth is projected to soften from a downwardly revised 3 percent in 2018 to 2.9 percent in 2019 amid rising downside risks to the outlook, the World Bank said. The slackening trend will affect Russia, whose gross domestic product will grow by one and a half percent. This is 0.3 percentage points less than the World Bank predicted in June. In its press release “Darkening Prospects: Global Economy to Slow to 2.9 percent in 2019 as Trade, Investment Weaken” the World Bank notes softening of international trade, a reduction in investment and heightened tensions in trade relations. “Slowing down or canceling structural reforms in Azerbaijan, Armenia, Belarus, Turkey and Ukraine will cause increased political uncertainty, as well as heightened tensions around Syria or Ukraine can lead to the imposition of new sanctions and undermine confidence in the region”, the report says. The new forecast also lowered oil prices. It is expected that in 2019 and 2020 a barrel of oil will cost about $ 67, which is $ 2 lower than forecast in June. At the end of December, the Ministry of Finance of Russia expected Russia’s GDP to grow at 1.3 percent in 2019. Earlier, the World Bank in a special report on Russia noted that the growth of the Russian economy at the level of 3 percent would be only by 2028. The World Bank publishes the Global Economic Prospects twice a year - in January and in June. Experts analyze key aspects of the global macroeconomic environment and their impact on the member states of the organization. Source: svoboda.org