Russia To Suffer Sharp 2009 Growth Contraction: World Bank.
"The World Bank on Tuesday said the Russian economy would contract 8.7 percent in 2009, worse than previously forecast, but predicted a modest recovery to growth of 3.2 percent in 2010.... The forecast is slightly more pessimistic than official predictions with President Dmitry Medvedev forecasting that GDP would shrink 7.5 percent this year...." [Agence France Presse/Factiva]
Reuters adds that "...the World Bank said the downside risks to the economic growth were linked to weak domestic demand and structural constraints, adding that post-crisis environment provided an opportunity for reforms. The World Bank said it expects the central bank to continue cutting interest rates to ease lending to enterprises but saw a limited impact from such policy since the cost of lending remains high despite previous cuts...." [Reuters/Factiva]
In addition, Prime-TASS reports that "...the World Bank expects Russia's federal budget deficit to amount to 6.9 percent of gross domestic product (GDP) in 2009 and 4.4 percent of GDP in 2010.... The World Bank also said the budget deficit might increase due to oil price volatility...." [Prime-TASS News (Russia)/Factiva]