UPDATE: Russian ministry improves inflation forecast to 6.4% in 2016

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MOSCOW, Oct 7 (PRIME) -- The Economic Development Ministry has improved its baseline forecast of Russia’s inflation to 6.4% in 2016, 6% in 2017 and confirmed its inflation estimate of 5.1% in 2018, according to data of the ministry seen by PRIME on Wednesday.

Earlier the authority expected inflation to stand at 7% in 2016 and 6.3% in 2017.

The Russian Gross Domestic Product (GDP) will fall 3.9% in 2015 and rise 0.7% in 2016, 1.9% in 2017 and 2.4% in 2018, according to a revised forecast of the ministry.

Russia’s central bank expects the economy to fall by 3.9–4.4% in 2015 with an average oil price at U.S. $52 per barrel of Urals. The economy will swing to growth on the quarter in July–December 2016, according to the regulator.

Investment will fall 9.9% in 2015, 1.6% in 2016, and will rise 2.1% in 2017 and 2.6% in 2018, according to the ministry.

Earlier the Federal State Statistics Service said that investment in the economy fell 6.8% in August and 8.5% in July. In January–August, it decreased 6% on the year.

The ministry also worsened its forecast of the ruble rate against the dollar. The national currency is likely to strengthen to 62.5 against the U.S. dollar in 2018 from 63.1 in 2017 and 63.3 in 2016.

Earlier the ministry expected the ruble to stand at 60 against the dollar in 2015–2016 and rise to 53 against the dollar in 2018.

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