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Russian economy to emerge from contraction
January 31, 2017, 12:02 pm

Oil prices continue to waver above $50 a barrel, improving prospects for Russia’s economic recovery [Xinhua]

Russia’s economy ministry on Monday said that GDP growth fell by one per cent in December from the same time last year.

In October, the economy contracted by 0.6 per cent but grew in November by a revised 0.9 per cent.

For 2016 as a whole, GDP fell 0.6 per cent from 2015.

According to forecasts by the World Bank, International Monetary Fund and the UN, Russia’s economy has beaten the effects of US and European Union sanctions over the Ukraine crisis.

In 2017, GDP growth is expected between one and 1.5 per cent.

Russian Economic Development Minister Maxim Oreshkin last week told reporters that the growth rate could go as high as two per cent in 2017.

In the face of sanctions, Russia has moved to diversify its economy, pursuing investments in different sectors and with different European, Chinese and Japanese firms, to name a few.

“We are working with all investment sources. Such an approach gives us the best possible opportunity to achieve results. We are hopeful that the growth rate will continue to rise,” Oreshkin previously said.

The near-stabilization of oil prices above the $50 mark has also helped boost revenues as most economic policy was designed with oil prices at $40.

The BRICS Post with inputs from Agencies

One Response to Russian economy to emerge from contraction

  1. Krishna A. Sharma Reply

    February 3, 2017 at 12:04 pm

    The western countries’ politicians are hurriedly trying to misguide the public and trying hard to find some or other excuse to keep daemonising Russia in the name of aggression after the Trump presidency is confirmed. The earlier govt. of U.S. has led the most comprehensive and all inclusive strategy to destabilize numerous countries who were a part of Russia historically icluding Crimea or were closely connected to it like Serbia and other eastern european countries. Why is US concerned about Ukraine which is thousands of miles away from it except to create conflict through encouragement to dissident leaders by promoting them with arms, ammunition and money. The US is promoting all middle east terrorists to attack Russia and China. India is too weak and is not a threat!

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