Russia’s Central Bank has upgraded its GDP growth outlook for this year to 1.3-1.8%

Russia’s Central Bank has upgraded its GDP growth outlook for this year to 1.3-1.8% from 1-1.5%, the regulator said.

"Economic activity continues to recover. Household consumption is on the rise alongside with the growth in investment and industrial output. Currently, a moderate growth in consumer expenditures does not exert any inflationary pressure under increased supply of goods and services. Considering the current recovery trends, the Bank of Russia has increased its GDP growth rate forecast to 1.3-1.8% in 2017," the report said.

Economic growth is getting closer to its potential level, the regulator said. "The situation in the labor market with the shortage of personnel in certain segments being evident is a constraint. In the sequel a GDP growth rate higher than 1.5-2% annually will be reached if structural reforms take place," the Central Bank said