European Commission raises Russia’s 2018 GDP outlook to 1.7%

MOSCOW, May 3 (PRIME) -- The European Commission has improved its forecast for Russia’s gross domestic product (GDP) growth in 2018 to 1.7% from 1.6% and for 2019 to 1.6% from 1.5%, it said in a report on Thursday.

“The impact of higher oil prices recirculating throughout the economy is likely to further support domestic demand and thereby GDP which is expected to grow by 1.7% in 2018,” the report said.

Growth is to edge down to 1.6% in 2019, “reflecting subdued productivity and lingering effects of sanctions.”

Unemployment level is projected at 5.2% in 2018 and 4.9% in 2019.

The revised inflation forecast amounts to 3.7% in 2018 and 4% in 2019.

The European Commission also raised its forecast for average Brent oil price in 2018 to U.S. $67.7 per barrel from $55.7 previously and to $63.9 per barrel from $54.7 in 2019.

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