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HomeAnalyticsIMF: Russian Economy on Road to Recovery Amid Firming Oil Prices

IMF: Russian Economy on Road to Recovery Amid Firming Oil Prices

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Russia is seeing a recovery in private consumption along with an uptick in manufacturing, at the same time, credit growth is picking up, according to the report of the International Monetary Fund (IMF).

The economy of Russia and other members of the Commonwealth of Independent States (CIS) is set to recover as firming oil process have lifted market activity, the International Monetary Fund (IMF) said in a report on Thursday.

“Russia and the rest of the CIS are finally on the road to recovery, with firming oil prices lifting activity,” the report stated. “The recovery in Russia will support activity in other CIS and Baltic countries.”

The IMF noted that Russia is seeing a recovery in private consumption along with an uptick in manufacturing. At the same time, credit growth is picking up.

“Russia can continue with monetary policy easing as inflation declines toward the central bank’s target and fiscal policy is adjusting to lower oil prices,” the report said.

Inflation in Russia is expected to fall to 4.5 percent in 2017, according to the IMF.

At the same time, Russia’s low external debt coupled with its large US dollar export proceeds are expected to mitigate the high share of dollar liabilities, the report said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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