BOFIT Forecast for Russia 2008-2010

In light of last year's faster-than-expected growth of the Russian economy, BOFIT's growth forecast has been revised upward. The forecast for 2008 2010 puts this year's growth rate at nearly 8%, easing to 6% per annum by the end of the forecast period. The outlook for rapid growth is bolstered by a projected oil price (Urals grade) in the range of USD 80 to USD 90 per barrel. While brisk consumption growth remains the basis of Russia's economic growth, booming investment has recently taken on a greater importance. Because Russia's imports are predicted to continue to expand faster than exports, the current account surplus could disappear by 2011.