Fitch Ratings upgrades Russia’s economic outlook for 2021

International rating agency Fitch has raised its forecast for Russia’s economic growth this year from 3.3% to 3.7%, saying GDP growth will accelerate to 5.5% in the second half of 2021.

According to the agency’s report, the forecast for Russia’s economic growth has been raised “due to the increase in oil production and the recovery in consumption in the country.”

Fitch noted that the forecast reflects its expectations that new business restrictions will not be introduced to combat Covid-19, vaccination will continue, and external demand for Russian goods will increase.

The rating agency maintained its forecast for Russia’s GDP growth of 2.7% in 2022 and 2% in 2023.

According to Fitch analysts, inflation in Russia rose to 6% in May and is expected to drop to 4.2% at the end of 2022, and to a target of 4% at the end of 2023.

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