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22 May 2015
IMF upgrades growth outlook for Russia
FXStreet (Mumbai) - The International Monetary Fund (IMF) has upgraded its growth outlook for Russia, projecting a less severe recession this year that should be followed by a mild recovery in 2016, according to a report following an official staff visit to the country.
The IMF expects a 3.4% contraction in Russia's GDP this year, compared to a 3.8% contraction forecast a month ago in its World Economic Outlook.
The report noted, "The recovery (in Russia) is unlikely to be strong as the limiting factors behind decelerating potential growth will take time to be addressed, leading to medium-term growth of 1.5 percent per year,"
"Structural bottlenecks" would impede long-term growth.
"However, in the near-term, sizeable buffers, including high international reserves, low public debt, and a positive net international investment position should help safeguard external sustainability."
The IMF expects a 3.4% contraction in Russia's GDP this year, compared to a 3.8% contraction forecast a month ago in its World Economic Outlook.
The report noted, "The recovery (in Russia) is unlikely to be strong as the limiting factors behind decelerating potential growth will take time to be addressed, leading to medium-term growth of 1.5 percent per year,"
"Structural bottlenecks" would impede long-term growth.
"However, in the near-term, sizeable buffers, including high international reserves, low public debt, and a positive net international investment position should help safeguard external sustainability."