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The Central Bank of the Russian Federation (Bank of Russia)

Press Service

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Information Notice

IMF confirms ongoing recovery of Russian economy

On 14-23 May 2018, the IMF European Department mission visited Moscow to hold consultations with the Bank of Russia and other agencies under Article IV of the Fund’s Articles of Agreement.

The IMF notes that Russia has established a strong macroeconomic policy framework in recent years. Inflation targeting and a flexible exchange rate of the national currency received positive assessment. The Fund believes that these measures will help address uncertainties associated with geopolitical tensions and reduce turbulence which emerging market economies recently faced.

The Fund emphasises that the fiscal rule guides budget indicators and protects the economy from the destabilising effect of abrupt oil price fluctuations. The IMF believes that a change in budget priorities is possible and welcomes the plans to boost spending on health, education and infrastructure.

The Fund’s experts see more opportunities to step up economic growth in Russia. They believe that to achieve this goal, structural reforms are needed aimed at boosting productivity and the supply of labour and capital.

The IMF believes that more efficient utilisation of public resources requires higher transparency and financial accountability, as well as improved corporate management standards, mostly in state-controlled companies.

The Fund also notes that with inflation below the 4% target and a closing out gap, the Bank of Russia can continue a gradual transition to a neutral monetary policy stance that drives economic activity.

The mission welcomed the Bank of Russia’s policy of banking sector resolution. The regulator’s strategy for returning rehabilitated banks to private hands is consistent with increasing competition and improving the allocation of capital.

The progress made in the implementation of the previous mission’s recommendations received a positive assessment during the consultations.

* For the full text of the mission concluding statement go to the IMF website.

23 May 2018

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