Fitch revises Russia’s 2017 GDP forecast to 1.6% from 1.4%

MOSCOW, Jun 30 (PRIME) -- Rating agency Fitch has upgraded its Russia’s 2017 gross domestic product (GDP) forecast to 1.6% from 1.4% projected in March, the agency said in a statement on Friday.

The agency has also confirmed a 2018 GDP growth forecast at 2.2% and introduced a 2% forecast for 2019.

Central bank’s most recent interest rate cut and statement support the view that Russia's economic recovery is gaining momentum without a pickup in inflation, Fitch said.

Fitch projects inflation in Russia at 4.5% in 2017-2019, which is lower than previously forecasted 5.5% in 2017 and 5% in 2018.

The agency also said it expects the central bank to reduce the key interest rate to 7% until the end of 2019.

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