Ministry of Economic Development predicts early ruble strengthening

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The Ministry of Economic Development expects the Russian economy to improve in 2016. The agency urges not to impede the ruble strengthening and to follow the policy of attracting private investment at the same time. According to "Kommersant", the relevant proposals are included in the macroeconomic forecast presented at the meeting with Russian President Vladimir Putin held on September 22 by Minister of Economic Development Alexey Ulyukayev.

The Ministry of Economic Development has estimated that with a tight monetary and credit policy and a relatively stable ruble, domestic and foreign investors will be interested in investing into Russian non-resource industries. However, Ulyukayev believes that after the collapse of 2014-2015, the national currency rate is likely to recover.

According to the forecast of the agency, the dollar will amount to slightly more than 54 rubles in 2018. And the investment will have increased by 8.7% by that time.

At the same time, the forecast notes that strengthening of the ruble and economic growth will be accompanied by the fall in personal income. The agency forecasts a decrease of 3.3 percent by 2018. According to the Deputy Minister of Economic Development Alexey Vedev, it is about "improving the economic efficiency through stimulating the investment demand by reducing the current consumption." Nevertheless, the Ministry of Economic Development doesn’t expect a significant reduction in social spending.

Text by Lenta.ru

Pictures by Kommersant