|The Russian Federation||2020|
|GDP, current US$ billion||1,481.9|
|Life Expectancy at birth, years (2018)||72.7|
In recent years, Russia has undertaken significant macro-fiscal stabilization efforts, resulting in an improved fiscal position (including a sizable accumulation of fiscal and reserve buffers), reduced exposure to oil price volatility, and a lower public debt burden.
A massive banking sector cleanup, together with enhanced regulation and supervision, fortified capital and liquidity buffers. These efforts have strengthened Russia’s ability to respond to the pandemic’s adverse economic shocks, allowing the Government to provide a substantial countercyclical fiscal stimulus (about 4.5 percent of GDP) and an accommodative monetary policy (the key rate was lowered by 200 basis points between February and July 2020).
Russia’s potential growth has been trending downward since the global financial crisis. Although near-term recovery will be contingent upon stemming the pandemic, longer-term economic prospects will depend on boosting potential growth by promoting economic diversification, reducing the state’s economic footprint, leveling the playing field for the private sector, improving governance - particularly of state-owned enterprises - and taking advantage of shifting global value chains.
A green transition could pose significant challenges for the Russian economy unless the Government undertakes preemptive steps toward decarbonization. The downward trajectory in poverty rates since 2010 was interrupted by the shocks of 2014-15. Since then, poverty has again declined, reaching 12.3 percent in 2019 (using the national measure). The official poverty rate increased to 13.3 percent in the third quarter of 2020 from 13.1 percent in the same period last year, reflecting the coronavirus pandemic’s impact. Emergency social protection measures prevented an even greater increase in the poverty rate.
Russia and the World Bank
The Russian Federation became a full member of the World Bank in 1992. In June 1993, the Bank organized a multilateral meeting in Paris to discuss the most critical reforms in Russia and coordinate related external assistance. The World Bank provided more than $16 billion in loans to support structural transformation in Russia. While demand for financing has fluctuated over the years, World Bank knowledge and technical assistance has been consistently at the core of our country engagement focusing on social and economic development of Russia and on addressing global challenges of fighting poverty, debt relief for the poorest countries and environmental protection.
Drawing on its global experience and deep local knowledge, the World Bank works in partnership with federal, regional and local governments to provide hands-on technical assistance for projects and programs. World Bank experts have in-depth knowledge and extensive global experience; their daily work is based on the principles of building strong partnerships with focus on results for development.
Activities planned, financed, supported or implemented by the World Bank may be low budget or large scale; comprehensive or focused on addressing a particular problem; include development of a conceptual framework for a program or project, development of its design, as well as implementation support, coordination, and monitoring and evaluation.
Last Updated: Apr 06, 2021