OECD improves Russia’s 2017 GDP growth outlook to 1.4% from 0.8%

BRUSSELS, Jun 7 (PRIME) -- The Organization for Economic Cooperation and Development (OECD) has improved its forecast for the real growth of Russia’s gross domestic product (GDP) to 1.4% from 0.8% in 2017 and to 1.6% from 1% in 2018, the organization said on Wednesday in an economic outlook.

The OECD expects the Russian economy to restore from recession supported by high oil prices, rising wages, and low interest rates that will support consumer consumption and investment in business, the organization said.

Russia’s inflation is seen at 4.2% in 2017 and at 4% in 2018. Net exports may rise 3.4% this year and 3% next year. Exports will grow on the back of rising oil prices and improvement in world trade, but general growth will be restrained due to the lack of structural reforms that prevents diversification of the economy. Tougher budget and tax policy will cap the increase in 2018, the OECD said.

The organization also increased the forecast for the growth of the world real GDP in 2017 to 3.5% from 3.3%, but maintained the estimate for 2018 at 3.6%.

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