IMF and Moscow globally agree on the economy

A new report delivered by the IMF on August 3, 2015 said Russia’s economy is “expected to contract by 3.4% in 2015, although growth should return in 2016.” The fall in oil prices for more than a year, the authorities’ ability to respond to the various “shocks” and the need for fiscal consolidation would be essential factors. Basing its forecast on average oil prices of $60 per barrel, the Russian government projected a 3.2% contraction of the national economy in 2015, followed by 0.7% growth in 2016.

Although he acknowledged that the Russian economy is facing serious challenges, Russian President Vladimir Putin insisted on Russia’s resilience and ability to overcome the crisis. In June 2015 in St-Petersburg, Putin explained that if the (more) difficult access to foreign capital and the drop in the prices of raw materials imposed Russia to “find new partners (and) open up new markets” especially from Asia, the “very deep crisis” certain people forecast in early 2015 “has not happened.” One will have to wait March 2016 when all the statistics for the year 2015 are available to know the state of Russia’s economy more accurately.