National Projects to buoy economic growth in Russia, says World Bank

TASS Russian News Agency | Jan 9, 2020 at 12:05 PM

WASHINGTON, January 9. /TASS/. Russia's National Projects, which particularly envision investment in infrastructure, will buoy economic growth in the country after 2022, the World Bank said in its January 2020 Global Economic Prospects report.

"National Projects - which are partly funded by the 2019 VAT hike and include investment in infrastructure and human capital - are expected to buoy growth over the forecast horizon," the authors of the report said. The forecasted period is through 2022.

In 2019, Russia's economic growth rates totaled 1.2%, World Bank's experts said (the result did not change compared with June expectations). Meanwhile, the World Bank downgraded its June outlook for 2020 by 0.2 percentage points (p.p.) to 1.6%. In 2021 and 2022, Russia's economic growth rates are expected to equal 1.8% (the result did not change compared with June expectations).

The International Monetary Fund (IMF) downgraded in October 2019 its outlook on Russia's GDP growth by 0.5 percentage point to 1.1% for 2019 compared with the April report, and upgraded the outlook by 0.2 percentage point to 1.9% for 2020. In its report, the IMF said that Russia's economic growth turned out weaker than expected in April, adding though that it would recover in 2020.