Mubasher: The Russian economy is recovering from recession on the back of effective policy response and higher oil prices, the executive board of the International Monetary Fund (IMF) said in a report on Tuesday.
Russia entered a recession between 2015 and 2016, after oil prices fell in the year before, however, with the recovery of crude prices.
Economic output has increased by 1.5% in 2017 on the back of robust domestic demand.
Inflation has fallen well below the Central Bank of Russia’s (CBR) 4% target since July 2017, driven by a weaker-than-expected recovery, tight monetary policy, as well as temporary effects on food and energy prices, according to the IMF.
Growth is projected at 1.7 percent in 2018, supported by rising credit and disposable incomes.
Headline inflation is projected to bounce back during the second half of 2018 to 3.5% at year-end, supported by the ongoing domestic demand recovery.