OECD: Better Perspective for Russia in 2012

According to the Organization for Economic Cooperation and Development (OECD), a deepening debt pit in the euro zone will drag its economy down 0.1% in 2012, but Russia promises a more rosy picture, with its GDP growth backed by high oil. OECD said the country’s GDP will speed up in 2012, growing 4.5% compared to 4.3% in 2011. Inflation should also fall this year to 4.6%, down from 8.4% a year ago.
Better figures from the OECD mainly rest on the assumption that oil prices will remain high, which should be used by Russia’s authorities to consolidate the country’s budget. The organization believes that the average oil price will remain at $115/bbl in 2012 or somewhat above that. Given a huge non-oil budget deficit that currently stands at 10% of its GDP, it is essential for the Russian government to revise the balance of income and expenses now, when they sill enjoy a huge flow of “oily money,” OECD concludes.

http://rt.com/business/news/oecd-europe-russia-forecast2012-904/