FX.co ★ Russian economy to contract by 3% in 2015

Experts at Citigroup bank changed their forecast for the Russian economy growth in 2015. They worsened Russia's GDP fall forecast for 2015 to 3% based on deeper decline in oil prices. A fall in black gold quotes and high risk of investment rating drop damage considerably the economy. Originally, the analysts at Citigroup considered that Brent oil price would be $80 a barrel. However, new forecasts suppose that the average price of Brent oil, one of the most traded assets, would fall to $63 in 2015. The largest international financial conglomeration underlines some positive changes in comparison with 2009 when oil prices slumped. In particular, a decision of the Central Bank to let the ruble float freely on the market cushioned the damage made to the country's economy. Citigroup's experts note that there is no comparison with the year of 1998 because, nowadays, Russia has a more balanced tax policy and larger reserves. It is noteworthy that, currently, reserves make up around $400 billion while back in 1998 they amounted to not more than $10 billion.