IMF upgrades forecast for Russia's growth to 1.8% in 2019

By  Trend

The International Monetary Fund (IMF) has upgraded the forecast for Russia's growth to 1.8% in 2019, according to the World Economic Outlook report released on Tuesday, TASS reports.

At the same time, IMF expects Russia's inflation to stay at the level of 2.8% due to tight monetary policy.

"Russia’s inflation, expected to average 2.8% in 2018, is below the target of 4%, driven by moderately tight monetary policy. However, it is projected to rise to 5.1% in 2019, supported by an ongoing recovery in domestic demand, higher fuel prices, and pass-through from the recent depreciation," the report said.

"Given the inflation outlook, monetary policy could also be adjusted from its moderately tight stance toward a neutral stance in Russia," the report added.

"Priority areas in Russia include improving property rights and governance, enhancing the institutional infrastructure, reforming labor markets, and investing in innovation and infrastructure," the IMF noted.