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Fitch upgrades Russia's GDP growth forecast to 4.3% in 2021

According to the report, noticeable growth of Russia’s GDP will be a result of legislative reforms aimed at removing structural restrictions on growth with maintained macroeconomic stability

MOSCOW, September 23. /TASS/. International rating agency Fitch upgraded the forecast for Russia's GDP growth in 2021 by 0.6 percentage points (p.p.) compared to the June forecast to 4.3%, the agency said on Thursday.

Fitch retained its forecast for Russia’s GDP growth in 2022 at 2.7% and 2% in 2023.

At the same time, the agency forecasts Russia’s inflation at the end of 2021 at the level of 6%, in 2022 - 4.2%, in 2023 - 4%. The key rate of the Bank of Russia, according to the forecast, will grow from the current 6.75% to 7% in 2021, the agency's analysts expect the figure to decline to 6% in 2022, and to 5.5% in 2023.

According to the report, noticeable growth of Russia’s GDP will be a result of legislative reforms aimed at removing structural restrictions on growth with maintained macroeconomic stability. Fitch analysts also noted significant strengthening of the Russian budget due to consistently high oil prices and other revenues.

The agency named additional sanctions, which undermine macroeconomic and financial stability, among the negative factors affecting the growth of the Russian economy. Fitch analysts also stressed the growing impact of oil prices volatility on the Russian economy, as well as deterioration of the sovereign balance of payments.