World Bank Sees 1.5 Percent GDP Growth In Russia For 2017

The Russian economy is getting a boost from rising oil prices.

The World Bank is predicting 1.5 percent growth in Russia’s gross domestic product in 2017 and sees a gain of 1.7 percent in 2018 and 1.8 percent the following year, helped by increases in commodity prices.

Russia’s projected GDP growth follows an estimated 0.6 percent contraction in 2016 and a 3.7 percent contraction in 2015.

"The stabilization in oil prices and the authorities' policy response -- exchange-rate adjustment, banking sector capital, and liquidity injections -- improved the short-term outlook, helped restore confidence, and stabilized the financial system," it said on January 10 in its annual global prospects outlook.

In Eastern Europe and Central Asia, growth is projected to rise to 2.4 percent in 2017, getting a boost as Russia continues to bounce back and other commodity exporters and Turkey recover.

The report said regional activity was supported by stabilizing commodity prices, accommodative policies, and reduced geopolitical tension, specifically between Russia and Ukraine.