MOSCOW, December 15 (RIA Novosti) – The World Bank cut its 2013 forecast for the Russian economy, saying weaker domestic demand and delayed investment recovery are threatening growth.
Russia’s economy will expand by 1.3 percent this year, the World Bank said, down from the 1.8 percent it predicted in September. Growth for next year is projected at 2.2 percent, and at 2.7 percent for 2015.
Economy Minister Alexei Ulyukayev said in November he expected annual growth of 1.5 percent. This is the lowest level at any time during Vladimir Putin’s tenures as president.
“The Bank expects that investment activities will slowly pick up, as the destocking cycle comes to an end and consumption growth will level out,” said Birgit Hansl, World Bank Lead Economist for Russia.
Private investment activities in Russia are expected to cautiously resume during 2014, but at a slightly lower growth rate than originally projected, the World Bank said.
In his annual State of the Nation address, Putin said Russia’s economic slowdown is mainly being driven by domestic causes rather than a spillover from a global downturn.