Russian finance minister: The worst is over for Russia’s economy

The worst is over for Russia’s economy and the economy has entered a period of stabilization, Russian Finance Minister Anton Siluanov said today, on March 19.

“Now, in general, we see that the worst is over, and quite the opposite, we see some signs of stabilization," he said. The minister stressed the recent appreciation of the ruble and said that since the beginning of the year it has become “one of the strongest currencies.” The situation on the financial markets is also stabilizing. 

The finance ministry expects the Russian GDP to shrink by about 3% in 2015. “How long will the recession situation last? We expect the pace of economic growth to fall by about 3 percent this year. We believe that the only possible source of recovery is the investment demand,” said Siluanov.   

The minister thinks that Russia may see 6-7% inflation in 2016. “I think the results at the 2015 yearend will demonstrate that inflation will be declining and we hope it may reach 6-7% next year,” he said. “We are as much interested in it as you are,” he added. 

He said that low inflation implies personal savings and, consequently, lending and economy growth. “Here we have the same goals as you do,” he stressed. “There are all grounds to register the planned inflation (12.2%) in 2015,” the minister said. He also pointed out the possibility to ensure inflation at 11-12% this year, because 11 pct points in the 16.7% current annual inflation are non-recurring factors.