Credit Suisse improves Russia’s 2016 GDP outlook to 0.3% fall

MOSCOW, Jun 6 (PRIME) -- Credit Suisse has improved its forecast for Russia’s gross domestic product (GDP) in 2016 to a 0.3% decline from a 1.5% decrease, the bank said Monday.

The bank now expects Russia’s GDP to grow 1.7% in 2017 compared to a 1% increase projected earlier.

Credit Suisse believes that Russia’s GDP growth in the near future will depend on the recovery of investment demand, which has been weak since 2013.

The bank expects an annual average Brent oil price of U.S. $45 per barrel in 2016 and $53 in 2017.

The International Monetary Fund has recently improved its forecast for Russia’s GDP in 2016 to a 1.5% decline compared to a 1.8% drop expected earlier.

Russia’s Economic Development Ministry expects GDP to fall 0.2% in 2016 and rise 0.8% in 2017. In 2015, the economy contracted 3.7%.

End