UPDATE: OECD improves Russia’s 2016 GDP fall outlook to 0.8%

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MOSCOW, Nov 28 (PRIME) -- The Organization for Economic Co-operation and Development (OECD) has improved its forecast for contraction of Russia’s gross domestic product (GDP) in 2016 to 0.8% from 1.7%, as seen by PRIME on Monday in the organization’s forecast.

The OECD also increased its forecast for the country’s 2017 GDP growth to 0.8% from previously expected 0.5%.

In 2018, the organization expects Russia’s economy to rise 1%.

The OECD also said it forecasts the country’s real GDP to rise by 1% in 2018, as the economy will start to grow in 2017 backed by high real wages that will increase consumer demand while low interest rates will support investment, the organization said.

Inflation will stand at 7.2% in 2016, at 5.9% in 2017, and 5% in 2018. Net exports will also increase by 1.3% in 2016 and by 0.3% in 2017 and 2018.

The Russian Economic Development Ministry forecasts a 0.6% GDP decline in 2016, a 0.6% increase in 2017, and to rise 1.7% in 2018. The ministry also envisages inflation of 5.5–6% in 2016 and falling to 4% in 2017.

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