NEWSWATCH Reuters: World Bank sees protracted recession in Russia

[“World Bank sees protracted recession in Russia” – Reuters – March 31, 2015]

Reuters covers pessimistic forecasts by the World Bank of Russia’s near-term economic prospects.

Russia faces a protracted recession as the impact of Western sanctions lingers and oil prices stay low, the World Bank said in a report published on Wednesday.

In its baseline scenario, the bank expected Russia’s gross domestic product to contract by 3.8 percent in 2015 and a further 0.3 percent in 2016, describing medium-term growth prospects as dim.

The forecast considers the prospect that sanctions could remain in place in 2015 and 2016, yet also notes that the negative impact of sanctions could persist even after the prospect of their being lifted.

Among other things, budget deficits and capital flight also are anticipated.

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