Russian Growth Forecasted at 1.5-1.6 Percent

Russia’s economy is likely to grow by 1.5-1.6 percent this year, Economy Minister Alexei Ulyukayev said on Wednesday, below a government forecast of 1.8 percent that has already been revised down.

“It is highly likely that the annual result will turn out to be lower than our current forecast of 1.8 percent,” Ulyukayev told reporters in Seoul, Korea. He said the shortfall would be in the range of 0.2-0.3 percentage points.

Ulyukayev has dialed back the government’s assessment of Russia’s long-term prospects, issuing a grim forecast last week that annual growth would average only 2.5 percent through 2030, down from a previous 4 percent.

Despite the oil-dependent economy’s loss of momentum, inflation remains above the central bank’s 5-6 percent target range, leading it to hold off making growth-boosting cuts in interest rates until price pressures abate.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza