ST. PETERSBURG: Russia must keep inflation low and stable if it is to have a chance of spurring economic growth via increased consumer spending, the World Bank’s chief executive officer (CEO) said.
Inflation stood at around 17 percent in early 2015 but Russia has since reined in consumer prices, bringing annual inflation down to a post-Soviet low of around 4 percent.
Kristalina Georgieva, the World Bank’s CEO, said keeping inflation low was important to give Russia’s middle class the confidence and ability to spend more.
The World Bank sees Russia’s gross domestic product (GDP) growing by 1.3 percent in 2017 and 1.4 percent in 2018 and expects annual inflation to stabilize close to the central bank’s target of 4 percent.
Georgieva said Russia also needed to ensure overall macroeconomic stability, pay attention to major social issues and boost competitiveness if it wanted to boost the economy.
Georgieva, who served as the World Bank’s director for Russia in the mid-2000s, was speaking to Reuters on the sidelines of an economic forum in St. Petersburg.
Russia must ensure price stability to spur growth: World Bank
Russia must ensure price stability to spur growth: World Bank
