World Bank says Russia’s economic recovery gaining pace

 World Bank says Russia’s economic recovery gaining pace

MOSCOW (Reuters) – The World Bank has lifted its forecasts for 2021 economic growth in Russia, noting signs of improvement in the labour market, but said planned fiscal consolidation may hamper the expansion, the global body said on Wednesday.

FILE PHOTO: A participant stands near a logo of World Bank at the International Monetary Fund – World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo/File Photo

After shrinking by 3% in 2020 under pressure from the COVID-19 pandemic and a drop in oil prices, the Russian economy is on track to rebound this year amid a global roll-out of vaccines and recovering demand.

In a new report, the World Bank said it now expects Russia’s gross domestic product to grow by 3.2% in 2021 and at the same pace in 2022 versus 2.9% and 3.2%, respectively, that it forecast in March.

“This is the baseline scenario of gradual decline in new COVID-19…

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