UPDATE: Russian ministry updates forecasts for 2015, sees GDP down 3.7%

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MOSCOW, Dec 9 (PRIME) -- Russia’s Economic Development Ministry has improved expectations of the gross domestic product (GDP) contraction to 3.7% from 3.9%, Minister Alexei Ulyukayev said Wednesday at a meeting of the Federation Council, the parliament’s upper house.

“The updated GDP estimate stands at 3.7% instead of 3.9%, the average annual rate (of the ruble against the U.S. dollar) remained the same (at 61 rubles) given that the (Urals) oil is worse than forecasted at about U.S. $51.5. And inflation will be slightly higher, at about 12.5%,” he said.

Russia’s industrial output will fall by 3.3% in the year, but investments will contract only by 7% instead of a previously forecasted 9.9% decrease.

Ulyukayev also told reporters that an average annual oil price of $50 per barrel in 2016 is possible. Oil will find balance between demand and supply by mid-2016, and until then prices may rise or fall.

“But in general, I think the price for 2016 will be $50 per barrel, while a consensus forecast is even higher…at about $55 for next year, so the figure of $50 looks like a rather realistic assumption,” he said.

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