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 Prime Minister Dmitry Medvedev has announced that the government’s anti-crisis plan has worked and he believes that Russia will soon escape from its economic downturn and may return to economic growth.

“The plan has brought results in almost all areas," Medvedev said in his annual interview to the country’s leading televisions channels.

He said that by stopping the decline in production, the government has avoided the contraction of the economy, enabling them to work on lifting the nation out of recession.

Medvedev has stated that the government has targeted an inflation cut of 6.4 percent in the next year, half its current level, which could see the country returning to economic growth, which he estimates could be about one percent in 2016.

“Perhaps it won’t be steady, but still definite growth,” he said.

Medvedev said the government was being realistic and that they had contingency plans in case things did not happen the way they expected. However, he believes Russia is able to support itself without external aid.

This announcement comes after US ratings agency Moody’s upgraded the outlook of Russian government bonds to stable, based on the increasing stability of the country’s economy, especially in the face of falling oil prices, which could have had dramatic effects on the Russian economy.

However, as the Russian economy is heavily dependent on crude oil, if the price drops below $40, Russia may struggle to turn GDP, production and consumer demand positive, the Economic Development Minister, Aleksey Ulyukaev, has warned.

 

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