Ministry of Economy worsened the forecast for GDP growth for 2018-2019 – Russia Ministry Economy worsened forecast GDP growth - Arhive

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Ministry of Economy worsened the forecast for GDP growth for 2018-2019 – Russia Ministry Economy worsened forecast GDP growth

MOSCOW ( MRC ) – The Ministry of Economy in a new macro forecast has worsened the dynamics of Russia’s GDP growth in 2018-2019, Kommersant reported citing a source in the government’s financial and economic bloc.

The forecast for GDP growth for 2018 was reduced from 2.1% to 1.9%, and in 2019 – from 2.2% to 1.4%. Among the reasons for revising the forecast is geopolitical uncertainty and decisions to raise VAT from 18% to 20% next year.Russia Ministry Economy worsened forecast GDP growth

The Ministry of Economy also forecasts higher inflation – 2.9-3.1% against 3.1% in the April version of the document. The forecast for the growth of real wages in 2018 is kept at 6.3%, and in 2019 – reduced from 1.3% to 1%.

Earlier it was noted that the Central Bank predicts the annual growth rate of Russian GDP at the level of 1.5-2% in the next three years.

As reported by MRC, last year’s GDP growth was 1.5%, which coincided with analysts’ expectations, but was below the government’s forecast (2.1%) and CB expectations (1.7% -2.2%).

And in the first quarter of 2018, Russia’s GDP grew by 1.3% compared to the same period in 2017.

mrcplast.ru

Author:                Margarita Volkova