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Moody's Also Predicts Russian Economy Will Shrink in 2014

Business | May 8, 2014, Thursday // 17:11| Views: 1580 | Comments: 0
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Rating agency Moody's has lowered its estimate for Russia's economic output in 2014 to a 1.5-2% contraction, according to its monthly report.

In its March forecast, the agency had put its outlook for the Russian economy at 2%, thus expecting growth.

Moody's has changed its estimates following the long-lasting negative developments in Ukraine and the prospects of additional sanctions against Moscow, according to Interfax agency.

Earlier, the World Bank also announced a 1.8% decrease of Russia's GDP for this year, but added this was the "worst-case scenario".

The International Monetary Fund (IMF)'s numbers seem to be the least unfavourable, with an April forecast for 0.2% in 2014, down from the previous 1.3%. Russia's Ministry of Economy, on the other hand, has kept its plans for a 1.1% growth of the Russian GDP.

The US and the EU have vowed to adopt more hard-hitting sanctions that could harm Russia's economy if Moscow does not contribute to solving the Ukraine crisis.

Russia has assured it could not be affected by Western measures and could easily seek cooperation with another partners, such as China and India.

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Tags: Moody's, International Monetary Fund, World Bank, Ministry of Economy, Russia, Moscow, ukraine crisis, sanctions
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