Analyst: World Bank forecast for Russia too pessimistic
Yet Nell says some positive aspects have been disregarded. In the second half of 2011, the economy recovered faster and the volume of investment in Russia and the volume of consumption increased. But he says capital inflow is challenged by “a lot of political uncertainty with the presidential elections coming up,” which he expects to go away after the new President takes office.
Although the World Bank report and many analysts expect the Russian economy to grow faster than EU countries, its dependency on oil prices and investment flowing out of country damages the economy, according to Nell.