Report: BOFA worsens Russia’s 2015 GDP decline outlook to 3.7%

MOSCOW, Aug 31 (PRIME) -- Bank of America has worsened its forecast for Russia’s gross domestic product (GDP) decline in 2015 to 3.7% from 2.8% on the back of second quarter results, low oil prices and a worse forecast for developing markets, Bloomberg reported Monday citing the bank’s economist Vladimir Osakovsky.

The forecast for GDP growth in 2016 was lowered to 0.3% from 1.1% previously.

The bank has also changed its outlook for Russia’s inflation to 12.2% in 2015 from 11.5% and to 6.3% in 2016 from 5.1% forecasted earlier.

The outlook for Russia’s current account surplus was raised to U.S. $82.4 billion from $67 billion in 2015 and to $72.3 billion from $46.7 billion in 2016.

Economic Development Minister Alexei Ulyukayev said recently that the ministry had changed its forecast of GDP contraction in 2015 to 3.3% from 2.8%, while in 2016, the economy may grow 1–2% instead of 2.3% projected earlier.

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