European Commission Improves Economic Forecast for Russia

PHOTO by Alexey Vitvitsky / RIA Novosti

The European Commission (EC) improved the forecast for Russia’s GDP growth in 2017 from 0.8% to 1.2%, according to an analytical review published by the highest executive body of the EU.

Following the forecast, in 2018 the growth rate should reach 1.4%.

According to experts of the EC, slowing inflation should untie the hands of the authorities in terms of easing monetary policy. Furthermore, the growth of the national currency increases Russians’ real incomes. These factors will lead to improving GDP dynamics, the experts believe.

According to the basic scenario of the Russian Ministry of Economic Development, Russia’s GDP growth in 2017 is expected to stand at 2%, sliding to 1.5% by 2018-2020.

The target development option envisages an increase in the domestic economy volume in 2018 by 1.7%, in 2019 – by 2.5% and by 3.1% in 2020. The International Monetary Fund predicts a 1.4% GDP growth for Russia in 2017-2018.