March 14, 2016, 13:48 / Finance

Gref: Russia's GDP growth could be 0.5–1% in 2017 with an oil price of $45

The Russian economy could grow by 0.5-1% in 2017 if oil prices rise to $45 per barrel, Sberbank President German Gref said in an interview with Institutional Investor.

"Last year the economy fell by 3.7%, our forecast for this year is another fall of 1.5-2%, which is more pessimistic than the consensus forecast of -0.9%. Next year, if prices oil will rise to $45 per barrel, we can grow by 0.5-1%,” Gref noted. However, for this, Russia “needs to carry out reforms that will lead to diversification of the economy” and reduce its dependence on oil and gas, the Sberbank president added.

According to him, it is necessary to carry out a “radical change in the investment climate,” the most important measures being the protection of property rights and reform of the judicial system. Also, Gref noted, it is necessary to carry out tax reforms that will stimulate investment and eliminate bureaucratic red tape.

Previously on the topic: The decline in Russia's GDP accelerated in January compared to December - VEB Previously on the topic: The oil market has apparently pushed off the bottom - IEA