Official: Russian govt hopes for zero economic growth in 2016

HONG KONG, Jan 18 (PRIME) -- The Russian government hopes for an at least zero economic growth in 2016 and expects that further decline will be overcome, Deputy Prime Minister Arkady Dvorkovich said Monday at the Asia Society forum.

“We hope that we will find a balance between budget consolidation and creation of economic incentives for industries and we will at least have a zero growth of the economy in 2016,” he said, adding that the government also hopes to avoid contraction of economic activity.

Given the current low oil prices, the government can easily explain contraction of the economy. “But we don’t want to do this, we want to restore economic growth even under low oil prices. And we know how to do it. We are discussing this with the central bank and the Finance Ministry,” Dvorkovich said.

On January 15, Vedomosti business daily reported citing Economic Development Ministry’s documents that the Russian government revised the gross domestic product (GDP) estimate for 2016 to a 0.8% contraction from a 0.7% growth and the average annual Urals oil price to U.S. $40 per barrel from $50.

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