World Bank lowers Russia's economic forecast

Moscow

THE World Bank announced a gloomier economic forecast for Russia on Tuesday as the rouble fell despite the central bank saying it had spent billions last week to prop it up.

Falling oil prices and sanctions over the crisis in Ukraine have taken a heavy toll on Russia's economy, and the World Bank on Tuesday predicted it would shrink by 0.7 per cent in 2015. It warned, however, that the contraction would be worse if oil prices were to keep sliding.

The bank had previously predicted zero growth for Russia for 2015. Its new forecast was in line with one from Russia's Economic Development Ministry last week, which p…