Russian cbank sees 2015 GDP dynamics better than forecast

MOSCOW, Dec 4 (PRIME) -- Russia’s gross domestic product (GDP) in 2015 could turn to be better than expected, the central bank’s research and forecast department said in a report on Friday.

In September, the central bank worsened its forecast for GDP decline in 2015 to 3.9–4.4% with an average annual price for the Urals blend oil at U.S. $52 per barrel from a 3.2% decline with a $60 Urals price expected earlier. The Economic Development Ministry expects the GDP to contract 3.9% in 2015.

“Taking into account the Federal State Statistics Service’s GDP data for the third quarter, the possibility for the GDP dynamics to be better than expectations has grown. This will happen if the statistics service’s GDP data for the third quarter is not revised down later and economic activity dynamics in October–December remains stable or improves,” the report said.

The statistics service said earlier the country’s GDP fell 4.1% on the year in July–September, while the research and forecast department expected a 5% decline.

Inflationary risks in Russia are growing amid worsening geopolitical situation, the report also said. “Inflation still remains high, inflationary risks have increased,” the department said.

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