04 May 2016, Annie Tsoneva, EMIS Editor
EC makes grimmer forecast for Russia’s 2016 GDP decline
However, Brussels improved its projection for Russia’s economic recovery next year to 0.5% from 0.3%.
“Downside risks to the outlook are related to a possible prolongation of sanctions throughout 2017, which would worsen economic confidence and a further delay investment recovery," according to the forecast.
Russia’s inflation rate is seen at 7.5% for 2016, down from 8.5% in the previous EC forecast.
The main factors for the Russian economy will be the geopolitical situation, low oil prices and the central bank's monetary policy.
Russia’s economy contracted 3.7% last year due to the western sanctions and low oil prices.
Kremlin expects a 0.2% decline in GDP for this year and a 0.8% growth next year.
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