World Bank projects sustainable post-Covid economic recovery in Russia

The World Bank, which has in recent weeks been raising its outlook for Russia, said on Tuesday it expects a steady recovery of the nation’s economy this year and in 2022.

“We forecast the growth of the Russian economy in 2021 by 3.2%, supported by strengthening domestic demand and rising energy prices,” it said in a report, adding that “The recovery will be sustainable in 2022, GDP growth will be 3.2% amid easing the effects of the pandemic and stabilizing prices for commodities.”

The bank’s economists pointed out that “Factors such as geopolitical tensions in 2021, including additional US sanctions, as well as an increase in the rate of the Central Bank of Russia from historically low values ​​put pressure on the forecast.”

The World Bank’s projection is better than that of the Russian Ministry of Economic Development and Trade, which expects the nation’s GDP to grow 2.9% by the end of the year.

For more stories on economy & finance visit RT's business section