Economics

World Bank predicts poverty growth in Russia for the first time since 1998

2 april 2015 | 10:31

GDP fall expectation has been also worsened.

Россия экономика кризис
Inflation is expected to reach 10% in Russia in 2015
World Bank predicts poverty growth in the next few years in Russia for the first time since the 1998 crisis.

The published report of the World Bank notes that there was a poverty rate increase last year – up to 11% against 10.8% a year earlier.

"The baseline scenario projects the increase to 14% (20.1 million people) in 2015 and 14.1% (20.3 million people) in 2016. This will be the first significant increase in poverty since the crisis of 1998- 1999" – says the report.

The authors of the report stress that there was no poverty growth even during the crisis of 2008-2009.

The World Bank also downgraded its forecast for GDP decline in Russia in 2015 – from 2.9% to 3.8%. According to the experts, there will be 10% inflation in Russia this year.

Read more: Ukraine's economy decreases by 6.8% in 2014

According to official data, the Russian economy shrank by 2.3% in February after 1.5% decrease in January.

Fitch Ratings predicts a deep recession for Russia. According to the agency, this year Russia's GDP will shrink by 4.5%. Experts at the Gaidar Institute predict that Russia's economy will decline by 6.8% in 2015, while inflation will be 17.1%.

Source: ITAR-TASS

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