EC worsens Russia’s 2016 economic forecast to 1.2% fall from 0.5%
MOSCOW, Feb 4 (PRIME) -- The European Commission (EC) has worsened its forecast of Russian economic fall to 1.2% in 2016 from 0.5%, as seen by PRIME in the winter economic forecast on Thursday.
The European Commission also expects the Russian economy to swing to growth in 2017 and to rise by mere 1% in the period.
Although the economy hit the bottom of recession on low oil prices, sanctions and structural problems, the 2016 forecast was revised because of prolongation of Western sanctions and a fall of oil prices, the authority said.
Russia’s inflation forecast was increased to 8.5% in 2016 from 8% and to 6.2% in 2017 from 6%, the European Commission said.
The Russian central bank also expects that the country will swing to growth no earlier than in 2017.
According to preliminary data of Russia’s Federal State Statistics Service, the Gross Domestic Product (GDP) of the country fell 3.7% in 2015.
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