Russia needs to improve its investment climate, diversify its oil-dependent economy and boost productivity growth if it wants to catch up with the global economy, the World Bank said on Thursday.

In a report called "Pathways to Inclusive Growth" the World Bank offered Russian authorities some tips on how to overcome existing economic and financial hurdles to achieve better prospects in the future.

"Although the fruits of many policy actions will only be visible in the medium and longer term, now is the time to start," the World Bank said.

After a decade of strong oil-driven growth, Russia's competitiveness is deteriorating. In 2016, the Russian economy shrank by 0.5-0.6 percent after falling by 3.7 percent in 2015.

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The economy is seen growing by 1-2 percent a year in the medium term, the World Bank said. This is below a global growth of 2.7 percent projected for 2017 and far below an average annual expansion of 7 percent seen in Russia in the 2000s.

Together with Russia's high vulnerability to trade shocks, this raises questions about the country's ability to retain the social and economic advances made since President Vladimir Putin came to power.

Read more at Reuters.