"Economic growth in Russia is expected to decline to 3.5% in 2012 from 4.3% in 2011 due to unfavorable base effects, a drought in agriculture, rising inflation, and weak global sentiment,” the World Bank said in the Global Economic Prospects report published on Wednesday.
According to the report, the Russian economy will grow by 3.6% in 2013 and 3.9% in 2014, gradually leveling up at 3.8% in 2015.
"Despite the projected high oil price, growth is expected to pick up only modestly to 3.8 percent by 2015 reflecting monetary tightening, a tight labor market, and capacity constraints,” the report said.
Russia is expected to have a surplus on the balance of payments at 3.3% of the GDP in 2013, which will drop to 2.6% in 2014.
Meanwhile, global economy is expected to grow at a relatively weak 2.3% and 2.4% in 2012 and 2013 respectively and "gradually strengthen to 3.1% and 3.3% in 2014 and 2015.
"Overall, the global economic environment remains fragile and prone to further disappointment, although the balance of risks is now less skewed to the downside than it has been in recent years,” the report concluded.