UPDATE3: Putin: Russia’s GDP slightly grows in Nov, to fall 0.5–0.6% 2016

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MOSCOW, Dec 23 (PRIME) -- Russia’s gross domestic product (GDP) has slightly increased in November and will likely fall by 0.5–0.6% in 2016, President Vladimir Putin said at an annual news conference Friday.

“There will be a small decline this year, but already not 3.7%, we thought it would be around 1%, then we revised (the forecast) and said it would be at around 0.7%, then at 0.6%,” Putin said.

In 2015, the country’s economy contracted by 3.7%.

Inflation will amount to around 5.5% in 2016, which gives grounds to assume that it will reach the target of 4% in 2017, Putin also said.

“I will remind that we had the best result in 2011 – it was 6.1%, this year it will be surely less than 6%, we thought it would be around 5.7–5.8%. Most likely it will be around 5.5%, it is thus a record low inflation level. This gives all grounds to assume that we will be able to reach the target figures and reach inflation of 5% and further 4% in the near future,” he said.

Industrial production will grow by 0.7–0.9% in 2016, the president said.

Russia’s capital outflow is decreasing and will amount to around U.S. $16–17 billion in 2016, Putin said.

The budget deficit will stand at 3.7% of GDP this year, which is worse than last year, but still an acceptable figure.

Russians’ real disposable incomes have fallen, but a small increase of wages was recorded over last few months, Putin also said.

Anti-crisis measures in the economy can’t be constant, but the government will continue to provide subsidies to certain sectors of the economy, Putin said.

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