IMF Improves Russian Economic Outlook for 2015

The IMF has revised its prognosis for growth of the Russian economy in 2016 up by 1.3 percentage points, from April's report, to 0.2 percent, according to the World Economic Outlook report.

MOSCOW (Sputnik) — The International Monetary Fund (IMF) has improved its prediction for the decline of the Russian economy by 0.4 percentage points, bringing it to 3.4 percent for 2015, the World Economic Outlook report revealed Thursday.

The IMF has revised its prognosis for growth of the Russian economy in 2016 up by 1.3 percentage points, from April's report, to 0.2 percent.

Following this spring’s robust recovery from the economic crisis, originally provoked by low oil prices and Western sanctions, Russian economic policy-makers revised their forecasts.

In mid-June, the Russian Central Bank projected a 3.2-percent contraction of the Russian economy this year, followed by 0.7-percent growth in 2016, to eventually reach 1.7-2.4 percent the next two years.

Economic Development Minister Alexei Ulyukayev said he expected an end to the recession in the third quarter of 2015, with GDP growth in late 2015 and early 2016.

President Vladimir Putin, speaking at last month’s St. Petersburg International Economic Forum, summarized his government’s plan to steer the economy back to 3.5 percent growth while keeping inflation at 4 percent.

In January, the Russian government presented a cost-cutting anti-crisis plan to balance the country's budget by 2017.

On a global scale, the Washington-based IMF revised growth forecasts downward to 3.3 percent, with an anticipated lift to reach 3.8 percent in 2016. It cited a setback in US activity in the first quarter of 2015 as contributing to the revision against April’s projections.