The Russian Ministry of Economic Development has revised its outlook on the reduction of the GDP for 2016. On the 30th of August, Vedomosti reported that the ministry expects that this index may grow from 0.2% to 0.6% at the end of the year.

The ministry has estimated that the pace of economic decline in the country, compared to the same period of the previous year, has accelerated.

For this year, Russian economists have forecasted a slight increase of the average oil prices, from $40 to $41 per barrel. They have also predicted an increase in the growth rate of the wage fund, a reduction of inflation from 6.5% to 5.8%, as well as a slight increase of the ruble exchange rate, from 67.2 to 67 rubles per dollar.

The ministry also noted that at a price of $40 per barrel of oil, the federal budget will remain unbalanced. Its deficit will exceed that forecasted by the Ministry of Finance, which was 3,2% of the GDP. At the same time, ministry experts have said with confidence that the rise in oil prices in the next year or two will be stable, and will range from $45 to $50 per barrel.

  Russia, Economy of Russia

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