The growth of economics will make up 1,3%
The International Monetary Fund lowered the growth forecast for the Russian economy and warned about large-scale economic consequences that can arise due to aggravation of the geopolitical crisis in Ukraine, the CNN Money reports.
The economics of Russia that is backed by exploration of oil fields and other minerals will increase only by 1,3% in 2014. Before this figure has been predicted to grow by 1,9%.
Yet, it is not the gloomiest prognosis for the Russian Federation. The experts of the World Bank estimate that the Russian economy will show even lower results for 2014. The major cause of declining economic growth is a sharp outflow of capital from the country and ruble devaluation.
Since the beginning of the year the national currency of the Russian Federation has cheapened by 8% against the US dollar, and the basic stock index of Russia fell by more than 10%.
In addition, the country began to feel the effects of the sanctions imposed by the EU and US.
The western countries have already imposed visa restrictions on Russian officials and businessmen, blocked banking accounts and international system of cashless settlements for some Russian banks. In case of escalation of the conflict with Ukraine, Europe threatens to toughen the sanctions in relation to Russia.
