UPDATE: Russia’s Sberbank CEO says expects GDP to rise in Jul–Dec

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MOSCOW, Aug 25 (PRIME) -- Russia’s gross domestic product (GDP) will increase in July–December, CEO of Russia’s biggest lender Sberbank German Gref said in a comment to a financial report of the bank published on Thursday.

“Although the Russian economy’s negative growth rates in the first half of 2016 we see some signs of stabilization as oil prices are rising and the ruble is strengthening, which allows us to forecast positive GDP dynamics in the second half of 2016,” Gref said.

But lending is not expected to increase in 2016 because of falling inflation and high rates, he said.

According to a presentation released by Sberbank later in the day, the bank improved its forecast for Russia’s GDP fall in 2016 to 0.5% from 0.7% and its forecast for inflation to 6.4% from 6.8%.

The bank now expects that the oil price will average U.S. $41 per barrel in 2016 instead of $40 per barrel projected earlier.

Sberbank also retained its forecast for the ruble exchange rate against the U.S. dollar at 68 on average in 2016 and at 65 by the end of the year.

The bank’s outlook for a rise of corporate deposits with domestic banks by over 10% also remained unchanged, while outlook for a rise of retail deposits was reduced to 5–10% from 15–18%. The bank also expects Russian corporate and retail lending to grow in the range from zero to 5% in 2016, according to the presentation.

(64.8140 rubles – U.S. $1)

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