EBRD: Russia’s GDP may rise 1% in 2017 after falling 1.2% in 2016

LONDON, May 11 (PRIME) -- Russia’s Gross Domestic Product (GDP) is likely to increase by 1% in 2017 on the back of higher oil prices, rising consumer demand and investment, according to a forecast of the European Bank for Reconstruction and Development (EBRD), seen by PRIME on Wednesday.

The bank expects that recession will continue in Russia in 2016 and the economy will shrink 1.2% in the period due to low oil prices and limited access to investment.

Without significant reforms, Russia’s GDP may rise by 1–2% annually in the long run, it said.

On Monday, EBRD’s president Suma Chakrabarti said that Russia’s economic growth could resume in the coming 18 months.

Earlier the European Commission worsened its forecast for contraction of Russia’s 2016 GDP to 1.9% from 1.2% and improved its 2017 growth forecast to 0.5% from 0.3%

In April, the Economic Development Ministry said in its general forecast that it expects GDP to contract by 0.2% in 2016 and rise by 0.8% in 2017.

End