The European Commission (EC) has lowered its outlook for Russia’s GDP growth in 2019 to 1% from 1.5%, the European Economic Forecast report – Autumn 2019 released on Thursday reveals, according to RT.
The EC has also adjusted its forecast for Russia’s GDP growth in 2020 to 1.4%, down from 1.8% as it was reported in the spring forecast.
The decrease in the forecast occurred amid a global recession. Thus, the EC reduced its forecast for world GDP growth for 2019 to 2.8% from 3.1%, for 2020 – to 3.1% from 3.6% compared with its spring forecasts. In the euro zone, the forecast for GDP growth has been reduced to 1.1% from 1.2% for 2019, to 1.2% from 1.5% for 2020.
The European Commission attributed the decline in Russia’s GDP growth in 2019 to such factors as reduction in consumption, VAT rate hike, and the slowdown in global economic growth. In 2020, the situation will gradually recover, in particular, thanks to programs on expansion of state investments, the EC notes.
In the report, the EC reduced its forecast for world GDP growth to 2.8% from 3.1% in 2019, to 3.1% from 3.6% in 2020, as compared to the spring forecast.
In the euro zone, the forecast for GDP growth in 2019 has been lowered to 1.1% from 1.2%, for 2020 – to 1.2% from 1.5%.
According to the EC, the risk of the UK leaving the EU without a deal in 2019 remains one of the serious uncertainties for the EU and the euro zone.
The EC also predicts a decrease in US growth: in 2019 to 2.3% from 2.4% and in 2020 to 1.6% from 1.8%.
The EC lowered its forecast for China’s GDP growth to 6.1% from 6.2% in 2019 and to 5.8% from 6% for 2020.