World Bank Warns Russia of Sanctions Cuts Growth Forecast

The World Bank cut its Russia growth forecast on Wednesday, warning of economic stagnation until 2016.
The international financial institution now sees the Russian economy growing by only 0.3 percent next year and 0.4 percent in 2016.

“Economic activity was already hamstrung by lingering structural problems and a wait-and-see attitude on the part of both businesses and consumers in 2013,” said the World Bank in its Russia Economic Report on Wednesday.

“An additional negative impact on the economy―besides slow structural reforms―came from increased geopolitical tensions and an uncertain policy environment.”

Russia has been hit by Western sanctions and declining trade following its incursion into neighboring Ukraine this year.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza