Morgan Stanley improves Russia’s GDP outlook to 1.8% in 2017

MOSCOW, Nov 27 (PRIME) -- Morgan Stanley has improved its outlook for Russia’s gross domestic product (GDP) growth in 2017 to 1.8% from 1.5% projected in July and to 2.3% from 1.8% for 2018, it said in a report on Monday.

Morgan Stanley said that high oil prices, a rise in salaries in the private sector and construction operations ahead of the world football championship to help economic growth in 2018. It added that inflation is to stay below 4%, prompting the central bank to reduce the key interest rate to 7% only.

Morgan Stanley’s outlook for the country’s GDP growth in 2019 stands at 1.8%, and for 2020-2022 at 1.8%.

Inflation in Russia is expected at 3.7% in 2017, 3.8% in 2018, 4.1% in 2019, and 4.2% in 2020-2022.

End