OPEC Revises Russian 2017 GDP Growth Forecast Up by 0.1% to 1% - Monthly Report

MOSCOW (Sputnik) — Russia's economy is expected to continue its turnaround and grow by 1 percent this year, the Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report on Monday.

"An improving oil sector and sound domestic economic developments have lifted Russian economic growth by 0.1 percentage point (pp) so far in 2017," the January report reads.

Last month's OPEC forecast stood at 0.9 percent.

OPEC noted the increase in services sector as well as industrial orders, as well as two subsequent months of rising industrial production by December. The report also mentioned that the country was seeing the lowest inflation rate in five years amid a continued tough monetary policy by the Central Bank and a stronger ruble.

"Further upward revisions are likely in the coming months, given a continuation of the current trend," OPEC said.

The revision comes as Russia emerges from a two-year recession that began amid collapsing commodity prices, including oil, as well as the Western sanctions. In 2016, Russia's economy is estimated to have contracted by 0.5 percent after contracting almost 4 percent the previous year. The first three quarters saw negative growth rates before a slight GDP increase in the fourth quarter. The Economic Development Ministry's 2017 baseline scenario forecast is a GDP increase of 0.6 percent.