UrBC, Moscow, June 17, 2019. The Central Bank of Russia lowered its GDP growth forecast for the year 2019, the bank’s press release on the CBR’s website says.

‘Taking into account GDP growth statistics for 2018 — 2019 Q1 published by Rosstat, the Bank of Russia lowered its GDP growth forecast for 2019 from 1.2-1.7% to 1.0-1.5%. Subsequent years might see higher economic growth rates as national projects are implemented,’ the press release states.

According to the bank’s analysts, the forecast had to get lowered because the actual GDP growth in the first half of the year did not meet the bank’s initial expectations.

‘In January-April, the annual industrial production growth rate remained close to the readings of 2018 Q4. Export growth rates have declined amid weakening external demand. Investment activity remains muted. Annual retail sales growth rate has been slowing down since February on the back of moderate dynamics of household income. Consumer demand and labour market conditions create no excessive inflationary pressure,’ the press release says.