Russian Economy Could Contract By 1.8% If Deepens Crisis Over Crimea

The World Bank warned that Russia’s economy could suffer a contraction of up to 1.8% if the crisis that arose as a result of the annexation of the Crimea region deepens.

The report published by the World Bank indicates that an intensification of the political tension could generate greater economic uncertainty and further reduce confidence and the economic activities of investors.

«The World Bank has developed two scenarios for Russia. Prospects depend widely on the recovery of confidence of entrepreneurs and consumers and geopolitical risks indicates the institution, which in the worst case also foresees a contraction of 2.1 percent in 2015.

However, the WB stressed that Russia managed between 2001 and 2010 to significantly reduce the rate of poverty among its population until it reached 10% in 2010, compared with 35% at the start of the Decade.