telegraf.com.ua
International credit rating agency Fitch Ratings has cut its growth forecast for Russia, predicting its economy will contract 1.5% in 2016, compared to a 0.5% growth estimate in December, Reuters Russian news service reported.
"In Russia, lower oil prices are reducing corporate incomes and have prompted pro-cyclical fiscal policy tightening, while high interest rates and falling real wages are squeezing consumption," the agency said in its statement.
Fitch is now assuming the Brent oil price, a global benchmark for Russia's main export, will average $35 per barrel in 2016 and $45 in 2017, down from $55 and $65 seen in December, according to the report.
The downgrade was part of a broader revision by Fitch of world economic growth forecasts. It said that for emerging markets, 2016 growth is now pegged at 4.0%, down from 4.4% estimated in December.