Report: JP Morgan improves Russia’s 2016 GDP fall forecast to 0.8%

MOSCOW, Mar 23 (PRIME) -- U.S. bank J.P. Morgan has improved its 2016 Russia’s gross domestic product (GDP) forecast to a 0.8% contraction from previously expected 1.5% as the bank has increased its average annual oil price to U.S. $38 per barrel from $33 per barrel,

Bloomberg reported Wednesday quoting the bank’s report for its clients.

On Tuesday, Russian Economic Development Minister Alexei Ulyukayev said that GDP may fall by 0–0.5% in 2016 if oil prices stay above $40 per barrel.

The official forecast of the ministry is based on an oil price of $41.5 per barrel in 2016 and encompasses GDP growth of 0.7% in the year. But on March 18, a representative for the ministry told PRIME that the GDP may fall 1.3–1.5%, if the average annual oil price amounts to U.S. $30 per barrel.

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