According to the IMF mission in Russia, its GDP this year will decrease by 1.5%, and next year it will grow by 1%. In April, the fund expected the Russian economy to contract by 1.8% for this year and grow by 0.8% in 2017.

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The Russian economy will contract by 1.5% in 2016 and grow by 1% next year, according to the report of the IMF mission to Russia. The recession will continue due to low oil prices, weak household income growth and fiscal consolidation, fund experts noted.

The IMF associates the resumption of growth next year with the stabilization of oil prices and the improvement of the country's financial situation. According to the report, the economy contracted less than in previous cases thanks to a package of measures taken by the authorities, including a move to a flexible exchange rate, increased liquidity in the banking sector, limited fiscal stimulus and a rollback of heavy regulation.

The mission noted a significant slowdown in inflation due to weakening economic activity, tight monetary policy and measures to limit income growth. According to the fund, consumer prices will rise by about 6.5% by the end of the year, and their growth rate will further decline in the direction of the target set by the Central Bank.

Among the main risks to the implementation of this forecast, the IMF identified a fall in oil prices below expected levels, budget imbalances and the weakness of the banking system, which is unable to provide a sufficient volume of loans for investment purposes.

The Fund recommends that the Russian authorities carry out structural reforms to ensure the necessary influx of investment. For this, according to IMF experts, institutional improvements are needed aimed at reducing administrative pressure on business and protecting property rights.

The report also talks about the need to improve the structure of the labor market by increasing population mobility and achieving a balance between supply and demand, as well as raising the retirement age. The Fund advises continued investment in innovative sectors of the economy, energy systems and transport infrastructure.

In the April edition of the World Economic Outlook, IMF experts estimated Russia's GDP contraction this year at 1.8% and expected moderate growth of 0.8% in 2017.

According to Finance Minister Anton Siluanov, inflation at the end of the year will not exceed 6% . The forecast of the Bank of Russia is 6–7%, the Ministry of Economic Development is 6.5%. The Central Bank aims to reduce inflation by the end of 2017 to 4%, and the Ministry of Economic Development expects it to be 4.9%.

The IMF has improved its forecast for the Russian economy