Page 26 - RusRPTMay19

The World Bank said on April 5 it had lowered its forecast for annual economic growth in Russia this year to 1.4% from a projection in January of 1.5%.
The macroeconomic situation in Russia is healthy but the country needs to proceed with structural reforms to unlock the potential for economic growth, IMF Managing Director Christine Lagarde said at a press conference on Thursday. "The fiscal, monetary and generally the macro situation of Russia is healthy," Lagarde says. "We still think that more deep and structural reforms are needed in order to make sure that the growth potential of Russia is increased," she added.
Dependency of the Russian economy on fluctuations in oil prices will continue to fall if the existing macroeconomic policy remains, including a free ruble rate, inflation targeting, budget rules, and operations with foreign currency. External and internal economic factors will increase growth of Russia’s GDP and maintain it at about 3.1% in 2020–2036, the budget forecast read.
Fixed capital investment will support the dynamics, rising by 4.5% in 2020–2036, or jumping by 7.6% in 2020 and slowing down to 3% in 2036. The share of capital investment in Russia’s GDP will rise from 22.2% in 2018 to 26.8% in 2032–2036, according to the document.
Under the Economic Development Ministry’s forecast, Russia’s GDP will increase by 1.3% in 2019, by 2% in 2020, and by 3.1% in 2021.
26 RUSSIA Country Report May 2019 www.intellinews.com