Putin: Russia GDP expected to recover from contraction, grow in 2017

Russia's gross domestic product is expected to recover from contraction and grow 1.4 per cent next year, President Vladimir Putin said Thursday.

Russia's GDP contracted by 3.7 per cent last year to 80.8 trillion roubles, according to official statistics released earlier this month, as the domestic economy struggles with weakened oil prices and tit-for-tat sanctions with the West over the Ukraine conflict.

Putin said that while the GDP is expected to decline by 0.3 per cent this year, "the trend is still positive."

"Russia's international reserves have returned to their level at the beginning of 2014, 387 billion dollars," Putin said during his annual call-in television show, in which he answers questions from the Russian public.

He added that prices for consumer goods were stabilizing.

Relatively low prices for oil - Russia's main export - have caused a devaluation of the national currency, pushing up prices for imported goods. A Russian-imposed ban on Western food imports has also caused inflation of food prices.

Last update: Thu, 14/04/2016 - 13:14

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