The IMF has improved the outlook for the Russian economy – RBC

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According to the updated IMF forecasts Russia’s GDP in 2016 will be reduced not by 1.5%, but only 1.2%. The forecast for 2017 remains unchanged – experts expect fund growth by 1%

In 2016 the volume of gross domestic product (GDP) of Russia will be reduced by 1.2%, according to TASS referring to the forecast of the International Monetary Fund (IMF). Thus, the IMF once again improved its assessment of the dynamics of the Russian economy – in the May version of the forecast predicted that Russia’s GDP will shrink by 1.5% in 2016, and in April, the IMF experts expect decline to 1,8%

The forecast for 2017 is upheld, on the economy of Russia are waiting for an increase of 1%

Explaining the forecast improvement, IMF experts say that experienced by the Russian economy dual shock -. from the decline in oil prices and sanctions – was mitigated by effective actions of the Russian authorities’

«The economy shrinking less than in previous downturns, as a stronger external position and economic package of measures by the authorities -. a flexible exchange rate regime, the injection of capital and liquidity in the banking sector, limited fiscal stimulus and lenient approach in the regulation – soften the shock, help restore confidence and stabilize the financial system, “- noted in the report

at the same time, IMF experts have noted that the medium-term prospects of the Russian economy” remain modest. “because of the unfavorable demographic situation and the lack of structural reforms leading to higher productivity. In these circumstances, the potential growth of the economy in the medium term is unlikely to exceed 1.5% per year

«The main risks for the Russian economy -. It is a further decline in oil prices, geopolitical tensions and the preservation of a weakened banking system over the long term “, – noted in the IMF report.