Russian economy faces two years of pain, Gaidar Institute predicts

Russian economy:  Russia is looking at two years of GDP decline, double-digit inflation and a falling rouble, according to both the Gaidar Institute and the Russian National Academy of National Economy and Public Administration (RANEPA). Basing their forecasts on the cost of  a barrel of Brent Crude staying at $55 until the end of next year before rising to $70.3 in 2017, analysts from the two  organisations are forecasting that the rate of GDP decline will slow down from 6.4% this year to 3.3% in 2016. They also predict that the rouble-to-dollar exchange rate will bottom out at 75.3 in 2016, the upside of which will be a boost to non-energy exports, but which  – along with high inflation  – will also put pressure on domestic demand. In real terms, retail trade turnover will decline by 10.9% in 2015 and 4.2% in 2016.

Source: Rosbalt