Fitch forecasts decline in Russian GDP in 2016

The Fitch international ratings agency revised the forecast on Russia’s gross domestic product or GDP. As reported on the Fitch website, experts believe that the Russian GDP will fall by 1.5% this year.

As early as last December, they forecasted 0.5% GDP growth but in February 2016 this changed to a 1% decline. Low oil prices in Russia reduced oil company profits that led to budget tightening policies.

Meanwhile, high interest rates and declining salaries are reducing consumption, the Fitch report says. According to the organization’s forecast, the Brent price of crude oil will be $35 per barrel in 2016 and will increase to $45 in 2017.

  Russia, Economy of Russia