The World Bank said on Wednesday that it lowered its outlook on the growth of Russia's gross domestic product (GDP) due to continued geopolitical tension.
Russia's GDP growth outlook was forecast at 1.1 percent by the bank in 2013 on the prediction that political tension would diminish. The percentage fell to 0.5 percent when it became apparent that was not the case. The bank predicts a lower growth outlook for 2015 as well, forecasting a 0.3 percent outlook and a 0.4 percent outlook in 2016.
The Russian Economic Development Ministry predicted a similar outlook in growth, but it expects growth to rise to 1.2 percent in 2015 and 2.3 percent in 2016.
According to the World Bank, investment growth and increased sentiment among consumers would increase the outlook.
Russian inflation is also expected to rise to 8 percent in 2014 before falling down to 6 or 7 percent in 2015.
These predictions do not account for potential escalation of geopolitical tensions or further sanctions.