EBRD: Russian authorities take the necessary measures to slow the decline of the economy

EBRD: Russian authorities take the necessary measures to slow the decline of the economy


The Russian authorities need to implement structural reforms that would significantly improve the situation in the economy, according to representatives of the European Bank for reconstruction and development. The Bank’s experts see the preconditions for recovery and growth.

LONDON, 5 Nov. Denis Voroshilov. The Russian economy starts recovering thanks to the actions of the government and stabilization in oil prices, but significant reforms were required to improve the situation, according to the economists of the European Bank for reconstruction and development (EBRD).

“A set of tools that come with the Russian authorities is extensive and they use it well. Helped (create a recovery economy — ed.) political stability, geopolitical stabilization, the stabilization of oil prices”, — said the managing Director of EBRD Matta Romani.

However, rates of recovery were higher Russian authorities need to implement major changes, indicate in the Bank. According to Romani, the Bank’s experts see the preconditions for economic recovery and growth, however, “there are a number of signs that the authorities needed structural reforms that could significantly improve the situation.”

“We are now seeing a recession, she continues,” added Romani.

Previously the EBRD has published an annual report, which improved the forecast of GDP — it by the end of 2015 will decrease by 4.2%, while the may forecast predicted a decline of 4.5%. In 2016 is expected to reduce GDP by 1.2%, in may the Bank predicted a decline of 1.8%,” — said in published on Thursday a document.

The volume of industrial production in Russia in 2015 will be reduced by 4.2%, in 2016 — by 1.2%. The authors of the report noted that the recession in Russia in the third quarter of 2015 will increase due to the continuing fall in oil prices, but will diminish in 2016, when the Russian economy adapts to low prices for hydrocarbons.