IMF affirms Russia’s 2017 GDP growth at 1.4%

MOSCOW, May 19 (PRIME) -- The International Monetary Fund (IMF) has kept its forecast of Russia’s 2017 gross domestic product (GDP) growth at 1.4%, it said in a statement on Friday.

“The economy is recovering from a two-year recession, which appeared to be not as deep as it used to in previous periods due to effective political decisions and sufficient reserves. According to estimates, a 1.4% growth is expected thanks to milder financial conditions and higher oil prices,” the statement read.

A 1.5% GDP advance is expected in the medium-term, it said and added that inflation continues to decline amid a strengthening ruble and weak consumer demand.

“We expect inflation to achieve a 4% level targeted by the Bank of Russia and to remain flat further,” the statement read.

The IMF is convinced that Russia’s government should use rising oil prices to accelerate adoption of necessary reforms to lay the basis of further economic development and to diversify from natural resources exports. The organization said there are four top priority tasks for the government, including the adoption of a budget rule, reaching the target inflation level and a gradual easing of the monetary policy.

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