Source : Flickr/Dennis Jarvis
Despite its continuous dependency on oil, Russian economy is set to grow from 2017 onwards thanks to higher global price and increased oil production according to World Bank.
World Bank said that they are expecting Russia’s GDP to grow by 1.4 percent in 2017 and stable 1.4 percent in 2018 and 2019 respectively. In the semi-annual report, World Bank said that greater earnings from oil sales are going to have positive impact on the economy as the country hopes to recover from crisis through modest economic growth in 2017-19.
The organization said to have predicted its growth based on increased rise in price as it estimated that the oil price would average $55 this year per barrel with $61.5 per barrel for following year. It also said that rising consumption and a recovery in investment activity would drive Russia’s economic growth, citing the 2018 soccer World Cup that Russia is set to host as giving a potential boost to public investment.
In the report, experts predicted that the country’s inflation rate will likely to be stabilized near the predicted target of 4 percent by the Central Bank but the longer growth prospects are constrained by low productivity.