World Bank predicts shock scenario for development of Russian economy

Recent reports of the World Bank predict a “shock” scenario for the Russian economy.

According to worst predictions of the World Bank, world oil prices might fall to $60 per barrel in 2012, resulting in a recession for the Russian economy and negative development growth of -1.5 %.

In case of such a shock scenario the unemployment rate will increase and the budget deficit will amount to 5% of GDP.

Experts of the World Bank do not rule out a different scenario of a moderate shock, providing that oil prices fall to $80 per barrel. In this case economic growth will decrease and amount to 2%, while the unemployment rate will return to the level of 7%.