Deputy PM: Russian economy may start growing in 2017–2018

BOAO, China/MOSCOW, Mar 23 (PRIME) -- The Russian authorities hope to stabilize the economy in 2016 and expect the Gross Domestic Product (GDP) to start growing in 2017–2018, Deputy Prime Minister Arkady Dvorkovich said at an economic forum on Wednesday.

“We hope to stabilize the economy this year already and that it will start growing in 2017–2018,” Dvorkovich said.

Russia has to adopt a range of measures in order to adjust to new economic conditions; it has to adjust investment, budgeting, the services sector – cut expenses of the federal budget and regional ones, launch new services and products, the deputy prime minister said.

Economic Development Minister Alexei Ulyukayev said on Tuesday that the economy may fall up to 0.5% in 2016 with an oil price at U.S. $40 per barrel.

WEAK RUBLE MEANS MORE COMPETITIVENESS

A weak ruble helps some industries increase their competitiveness, Dvorkovich said in an interview to CNBC TV channel.

“The economy is adjusting. We saw a 3% fall of the economy last year, but the ruble devalued allowing a range of branches to start growing again. For example, agriculture is the driver of economic growth in Russia nowadays. The chemical, pharmaceutical industries are growing now,” he said.

“We expect that Russian exports to China, Europe and other countries will rise due to the weak national currency. We are investing in export-oriented institutions, and it stabilizes the economy.”

Earlier in March, Central Bank Chairwoman Elvira Nabiullina said the floating ruble rate partially offset currency shocks and a weak ruble supported agriculture, the food, chemical industries and production of natural resources.

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