Bloomberg Predicts Russian Economic Growth in 2017

PHOTO by Vladimir Astapkovich / RIA Novosti

Russia's GDP will grow by 1.1% this year and by another 1.5% the year after, according to a survey of analysts conducted by Bloomberg.

According to analysts, increasing oil prices, which doubled in 2016 after two years of decline, will be the main reason for Russian economic growth.

An improvement in the investment climate and a decrease in political risks for foreign investors will also contribute to the growth of Russia's GDP as well, according to the analysts surveyed by Bloomberg. It's also assumed that the United States will ease sanctions against Russia.

This forecast is close to the expectations of other institutions. The UN estimated that the Russian economy would grow by 1% this year and 1.5% the year after. According to the World Bank, the Russian economy will grow by 1.5% this year and by 1.7% in 2018. The Institute of International Finance, or IIF, predicts a GDP growth of 1.4% in 2017 for Russia.

According to the predictions of Russia's Ministry of Economic Development, the country’s GDP will grow by 2% by the end of the year.

According to Rosstat, Russia's GDP fell by 0.2% in 2016.