The International Monetary Fund followed the lead of the World Bank by cutting its growth forecasts for Russia on Tuesday amid lackluster expectations for the global economy.
The country's economy will expand 3.7 percent this year and 3.8 percent in 2013, according to the IMF's World Economic Outlook. That is 0.3 and 0.1 percent lower, respectively, than the most recent predictions, in July.
"Activity in Russia ... has also lost some momentum recently," the IMF said.
But Russia is not alone in its bleaker prospects. The report dropped its growth predictions for both emerging and developed markets and cut its 2012 global growth forecast from 3.5 percent to 3.3 percent.
Russia's economy expanded 4.3 percent in both 2010 and 2011, but many forecasters have been revising this year's predictions downward as domestic consumer demand falls and volatility persists in international markets.
Despite buoyant oil prices, the World Bank on Monday cut its estimates for Russian growth to 3.5 percent this year and 3.6 percent in 2013.
What growth the country has achieved, however, has been closely monitored by some of its neighbors, who follow the economic fate of their larger partner closely.
Activity in Russia has helped mitigate some of the economic woes of the eurozone for neighboring countries, the IMF said.
"Robust growth in Russia has provided some offset to the weaker euro-area external demand in emerging Europe," according to the fund.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.