Russia Loses Over 1% in Expected 2014 GDP Growth After IMF Revision | Business | RIA Novosti

Russia Loses Over 1% in Expected 2014 GDP Growth After IMF Revision | Business | RIA Novosti:



"The International Monetary Fund (IMF) on Thursday lowered its outlook for Russia’s GDP growth this year from 1.3 percent to just 0.2 percent citing increased capital flight and sluggish investment activity threatened by geopolitical tensions.



“Our largest downward revision, relative to our WEO April forecast, is for Russia, where we have revised growth for 2014 from 1.3% to 0.2%, and for 2015 from 2.3% to 1%,” IMF Economic Counsellor Olivier Blanchard said, presenting the revisions in Mexico.



“This reflects mainly a deterioration of business confidence, which has been aggravated by geopolitical tensions. The result has led to large capital outflows, and a near freeze in investment decisions,” Blanchard stated in his opening remarks at the launch of IMF's World Economic Outlook (WEO) Update."



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