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Russian Central Bank Forecasts Unemployment to Reach 6.5% by End of 2015

© Sputnik / Alexei Danichev / Go to the mediabankRussia's Central Bank Chairperson Elvira Nabiullina
Russia's Central Bank Chairperson Elvira Nabiullina - Sputnik International
According to Central Bank’s head, bank forecasts unemployment in the country to grow from the current 5.6 percent to 6.5 percent by the end of 2015.

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MOSCOW (Sputnik) The Central Bank of Russia forecasts unemployment in the country to grow from the current 5.6 percent to 6.5 percent by the end of 2015, the bank’s head Elvira Nabiullina said Monday.

“Amid economic recession, there has been a certain increase in unemployment, which, seasonally adjusted, currently stands at 5.6 percent,” Nabiullina told reporters.

“The continuing drop in demand will lead to higher unemployment, which we estimate will rise to 6.5 percent by the end of the year,” she added.

According to the Central Bank head, a gradual recovery of economic activity will lead to a fall in unemployment, which is set to again reach about 5.6-5.8 percent in 2018.

Russia's GDP is expected to grow at 1.7-2.4 percent in 2017-2018, head of the Bank of Russia said.

"Russia's GDP growth will increase in 2017-2018, but will stay at a moderate level at about 1.7-2.4 percent," Nabiullina said at a news conference in Moscow.

According to a press release issued by the Central Bank earlier on Monday, the Russian economy is expected to contract by 3.2 percent in 2015.

Annual inflation in Russia will stand at 11 percent in December 2015 and may slow down to a target level of 4 percent in 2017, Elvira Nabiullina said.

"According to our updated estimates, the annual inflation rate will be around 11 percent in December 2015. A year from now, in June 2016, inflation will decline to less than 7 percent per annum, and come close to the target level of 4 percent in 2017,” Nabiullina told reporters.

The Central Bank head noted that Russia’s ban on certain food imports from the European Union no longer affects inflation in the country.

The current recession in Russia has not yet reached its peak, head of the Nabiullina said.

“Unlike the peak of inflation, the bottom of recession, in our opinion, has not yet been passed,” Nabiullina told reporters.

The net capital outflow in Russia may slow down from $90 billion in 2015 to 55-65 billion in 2018, Nabiullina, said.

"We are expecting the financial sanctions against Russia to remain in place [in the near future]. Payments on foreign debts during this period will constitute the bulk of the capital outflow," Nabiullina said.

"It [the capital outflow] will gradually reduce from $90 billion to about $55-65 billion during 2015-2018, depending on the scenario," she added.

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