EBRD: Recession in Russia will continue in 2016

Baku. 15 May. REPORT.AZ/ The EBRD, set up after the collapse of communism in the early 1990s, said Russia would contract by 4.5% in 2015 and by almost 2% in 2016, with knock-on effects on neighboring countries.

"Deep recession in the Russian economy is having larger-than expected negative spillover effects on countries with which it has strong economic links. The impact of the Russian downturn has worsened the outlook for eastern Europe and the Caucasus and for central Asia."

Russia could face a protracted period of slow growth or stagnation, it said, exacerbated by the fact it is overly dependent on the oil and gas sector. "Low oil prices and sanctions have taken their toll on an already weak economy with deep-seated structural problems," the EBRD said.

According to the Russian Ministry of Economic Development oil price in the case of being 60 dollars per barrel in 2016 it will increase by 2.3%. In addition, it is emphasized that economic growth in 2016-2018 will by 2,7-3,3%.

in April, former Finance Minister Alexei Kudrin said that Russian economy will face recession in next 5 years.

Average forecasts show that the Russian economy after recovering from the crisis will enter a phase of recession. Chairman of the Russian "Sberbank" German QReF also agreed with this idea. He noted that if structural reforms will not take place in the near future, the country will not have stimulus for economic growth.