Russian Outlook Dims for World Bank as Consumption Wilts

Russian consumption, which accounts for about half the $2 trillion economy, is falling victim to tensions over Ukraine, stalling the country’s “main growth engine,” the World Bank said in a report today.

Consumption growth will probably slow to 0.5 percent in 2015 and 0.6 percent in 2016 from about 2 percent this year, under the World Bank’s baseline scenario, which sees a period of “near-stagnation.” Gross domestic product will expand 0.5 percent in 2014, compared with 1.3 percent last year, and gain 0.3 percent in 2015 and 0.4 percent in 2016, the lender said.