Off the wire
• Van Gaal criticizes Schweinsteiger after Manchester United out of Champions League  • China regrets U.S. aircraft tax consultation request  • Factories shuttered in smoggy industrial hub  • Sri Lankan President vows to eliminate corruption  • Substantial progress achieved in global malaria control: WHO  • Space station receives first U.S. shipment since rocket explosion  • Results of men's FIS Alpine Skiing Points Race  • Bangladesh's July-November remittances total 6.17 bln USD  • Interior minister says not to run for Latvian PM  • Record number of tourists visit Birmingham, making 9.3 bln dollars for city  
You are here: 　 Home

Russian economy stops falling, growth expected in 2016: PM

Xinhua, December 9, 2015 Adjust font size:

The Russian economy has stopped decreasing and is expected to start growing next year, Russian Prime Minister Dmitry Medvedev said Wednesday.

"We had a goal to stop the decline of production, to stop the decline of the economy. And now, on the basis of the data provided by the government and the Economic Development Ministry, I can say the fall of the economy and the decline in production have been curtailed. And we believe next year the economy will be growing," Medvedev said in a live annual interview broadcasted by Russian TV channels.

"A relatively optimistic estimate of economic growth is around 1 percent," he added, noting that the anti-crisis plan adopted in January proved to be effective, with slow but efficient progress made in import substitution programs.

The State Duma, Russia's lower parliament house, approved on Friday a rigid federal budget for 2016 based on the government's macroeconomic forecast for 2016-2018, according to which inflation in Russia would shrink to 6.4 percent in 2016 from 12.2 percent expected this year.

"I believe this forecast, this scenario is quite realistic, and we will really be able to halve the inflation to 6.4 percent," Medvedev said, adding that the inflation had practically stopped rising in the last few months.

Monthly inflation in Russia was 0.75 percent in November, practically unchanged from 0.74 in October, but up from 0.57 in October, according to the official Rosstat statistics agency.

The government's macroeconomic forecast was based on the average oil price of 50 U.S. dollars per barrel and the average ruble exchange rate of 63.3 per dollar next year, compared to an estimated average of 53 dollars per barrel and 61 rubles in 2015.

Oil prices are not encouraging, and if the decline continues the government will have to make adjustments to the budget, Medvedev said.

On Tuesday, Brent crude for January delivery decreased 47 cents to close at 40.26 dollars a barrel on the London ICE Futures Exchange, the lowest in nearly seven years.

"At the moment we rely on the realistic scenario. But we would be bad managers if we did not have a B plan or even a C plan, if they are needed for such a development," Medvedev added.

The Russian economy found itself in a critical condition due to a decline in global prices of oil and other traditional Russian export commodities.

Domestic situations worsened as Western countries imposed sanctions on Moscow's economic, defense and banking sectors due to the takeover of Crimea and alleged involvement in hostilities in eastern Ukraine.

Nevertheless, Medvedev said the Russian economy has proven to be capable of developing without external support.

"Our economy has proven to be self-sufficient ... Our country, no doubt, is capable of living and developing even under such conditions," said the prime minister. Endi