UPDATE 3: Economic minister says Russian economy to grow by 1% in 2017
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ROME, Nov 8 (PRIME) -- The Russian economic situation improved in 2016 as compared with the last year, and the economy will expand about 1% in 2017, Economic Development Minister Alexei Ulyukayev said at a meeting with Italian businessmen on Tuesday.
“We expect that economic growth will amount to about 1% next year and will reach 2% or 2.5% in the next three years,” the minister said.
The oil price will stabilize at slightly above U.S. $50 per barrel and the gas price at about $180–190 for 1,000 cubic meters in 2017–2019, he said.
“This is, from our point of view, the level of the balance which is comfortable both for consumers and producers. These are our expectations connected with the restoration of economic growth in 2017 and its extension into 2018–2019,” Ulyukayev said.
According to Ulyukayev, Russia’s consumer prices will rise 5.5% in 2016 and 4% in 2017.
“This year the figure is record low for us. I understand that for the European level that a 5.5% inflation is low sounds quite weird, nevertheless it is so for Russia,” Ulyukayev said.
“This year inflation will be about 5.5% and it is quite likely that it will amount to about 4% next year.”
Ulyukayev said that Russia wants to abolish mutual sanctions with the E.U. but the European partners are unwilling to move in this direction.
“This is not our choice. The best proposal would be mutual lifting of the restrictions. We would welcome it but unfortunately, our partners, including the European partners, are not expressing their good will in this respect.”
The minister also said that Russian farmers will harvest 117 million tonnes of grain in 2016, of which 35 million tonnes will be exported.
“Russia became the largest grain exporter last year with more than 30 million tonnes. This year the crop is planned at 117 million tonnes. I think that we will export about 35 million (tonnes),” Ulyukayev said.
The 2016 grain harvest forecast earlier amounted to 116 million tonnes.
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