The European Commission (EC) believed in the Russian economy and improved the country’s GDP growth forecasts for the next two years. The organization’s report said that the figure will increase by 3.9 percent in this and by 2.6 percent – next year. In the spring, an increase of 2.7 and 2.3 percent was predicted, respectively.
In 2023, a rise of 2.2 percent is expected. The real GDP of Russia has already exceeded the dagedmamic level, emphasized in the EC. Public investments may increase due to high commodity prices and increasing budget revenues, consider in the organization.
However, unstable prices, uncertain prospects for fossil fuels and lack of access to loans for small and medium-sized businesses make it difficult for private investment, added to the EC. The Commission predicts that inflation in Russia this year will be an average of 6.2 percent, and in the coming year will slow down to 4.8 percent. The EC also improved the growth forecast of the eurozone economy for 2021 from 4.8 percent to five.
In addition, the organization has significantly improved forecasts for oil prices. On average, this year, Brent brand will cost $ 71.6 per barrel against the expected spring of 63.9 dollars. The next year estimate is improved from 61.6 to 78.9 dollars per barrel.
Earlier, the head of the European Department of the International Monetary Fund Alfred Cammer approved the policies of the Russian authorities during the COVID-19 pandemic and stated that government actions allowed the economy to recover.