The Russian economy has not met expectations of the IMF

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www.vsyako.netPhoto: Vladimir Astapkovich / RIA Novosti

The international monetary Fund (IMF) has lowered its estimate for economic growth Russia by the end of 2019. This follows from the statements of the Fund on the advice of the Executive Council of the organization with Russia, TASS.

The IMF lowered expectations for growth in Russia’s GDP from 1.4 percent by the end of 2019 to 1.2 percent. This is due to the low growth estimate for the first quarter, the decline in oil prices and the impact of the increase in VAT from 18 to 20 percent at the beginning of the year in private consumption.

In addition, the Fund noted that inflation in Russia began to decline. It is expected that the indicator will return to the target level of four percent by the beginning of 2020.

The IMF said that the Russian economy continues to show moderate growth in the presence of structural constraints in terms of sanctions. The volume of production last year rose 2.3 percent. This was due to the exports and consumption, which favored the increase in real wages and increase labor demand. According to the Fund, investments in Russia will grow moderately compared to 2018.

Meanwhile, according to the official forecast of Ministry of economic development, the growth of the Russian economy by the end of 2019 will amount to 1.3 percent. The Central Bank’s GDP growth forecast in the range of 1-1.5 percent.

In may, the IMF said that the growth of the Russian economy in 2019 will remain at the previous three years and amounted to 1.4 percent. Also in April, the forecast for GDP growth was 1.6 percent.

Also your expectations for the Russian economy has reduced the world Bank. In June, it revised its forecast regarding the growth of GDP in 2019 from 1.4 to 1.2 percent. Also in March the world Bank expected growth of the Russian economy to 1.5 percent.

According to Rosstat, in the first quarter of 2019 the growth of Russia’s GDP slowed sharply to 0.5 percent in annual terms. In the fourth quarter of 2018, he was at 2.7 percent. The reasons were the increase of VAT from 1 January and ahead of interest rate hikes by the Central Bank.

Video, photo All from Russia.

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