IMF still expects Russia’s economy to contract in 2016

WASHINGTON, Jun 22 (PRIME) -- The International Monetary Fund still expects Russia’s economy to contract in 2016, but not as fast as in 2015, Managing Director Christine Lagarde said in a news conference Wednesday.

Previously, Russian President Vladimir Putin said that the country managed to weather the most serious problems in its economy and it may restart to grow very soon.

Lagarde said that the fund has no positive forecast for the Russian economy, and still expects it to shrink in 2016 albeit slightly less than in 2015, she said.

In May, the IMF improved its forecast for Russia’s gross domestic product (GDP) to a 1.5% fall in 2016 from a previously expected 1.8%.

According to a forecast of the Economic Development Ministry, Russia’s GDR will fall 0.2% in 2016 and rise 0.8% in 2017. In 2015, the economy contracted 3.7%.

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