MOSCOW, Oct. 2 (UPI) -- The International Monetary Fund cut its economic growth forecast for Russia, noting geopolitical uncertainty is causing investor hesitancy.
The Washington-based lender halved its forecast for Russian economic growth in 2015 from one percent to one-half percent.
"Geopolitical uncertainties are having a big direct impact on the Russian economy. Uncertainty makes investors very reluctant to invest in Russia," said the IMF's Antonio Spilimbergo at the conclusion of a semiannual visit to Moscow.
He added, though, that despite Western sanctions affecting the Russian economy, Russia has a large foreign-reserve fund, a low public debt and a small public deficit. The country should stick to existing fiscal policy and not impose capital controls. A rumor, earlier this week, about the possibility of capital controls, in which Russia could impose transfer taxes or other limits to the cross-border movement of capital, sent the ruble falling on international currency markets.
