UPDATE: Econ ministry cuts GDP estimate to 1.7% in Jan, 1.3% in Feb - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

UPDATE: Econ ministry cuts GDP estimate to 1.7% in Jan, 1.3% in Feb

(Adds details in paragraph 7)

MOSCOW, Apr 16 (PRIME) -- The Economic Development Ministry has reduced RussiaТs gross domestic product (GDP) estimate to 1.7% from 1.9% in January and to 1.3% from 1.5% in February, it said in a research note on Monday.

It added that industry, professional services and financial markets were the major contributors to the growth.

The domestic markets has overreacted to the latest set of sanctions imposed by the U.S. against several Russian companies and individuals, the document also read.

УThe announcement of new sanctions led to adjustment of risk assessment by financial market players. From April 6 through April 10, the ruble weakened by 9.3%, or 5.3 rubles, against the U.S. dollar to 63 rubles per U.S. dollarЕ The stock market was highly volatile, too,Ф the authority said.

УThe MOEX Russia index lost around 5% in the period. However, the results of the next few days demonstrated that the initial reaction of the markets was somewhat excessive.Ф

The ruble weakening may translate into growth of inflation only if it persists for a long time, the ministry said and added that inflation is expected at 0.3-0.5% in monthly terms and 2.3-2.6% in annual terms in April.

The authority sees the long-term equilibrium rate of the Russian ruble at 50 rubles per U.S. dollar.

The ministry is sure that the government has a wide range of tools to absorb the risks from external shocks both at the local and the systemic levels.

The sanctions are able to impact RussiaТs economy only if there are lengthy negative dynamics on the financial markets, it added.

End

16.04.2018 17:30
 
 
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