In 2017, global GDP growth was estimated at 3.0 percent, up from 2.4 percent in 2016, registering its highest rate since the global financial crisis.
Benign financial conditions, accommodative policies, and improved confidence contributed to this acceleration in growth. In 2018, oil prices continued to strengthen.
In Russia, the ruble also strengthened on the back of higher oil prices and tax payments. A favorable external environment (recovering external demand and improved terms of trade) supported the current account in 2017: its surplus increased by about US$15 billion compared to 2016, to US$40.2 billion.
In November, industrial production dropped, as all its components contracted, with manufacturing contributing the most. Meanwhile, the seasonally adjusted HSBC PMI manufacturing index increased to 52 in December from 51.5 in November, the highest reading since July, suggesting solid improvement in operating conditions of the manufacturing sector in December.
Labor market indicators showed mixed dynamics in November. Annual average consumer inflation almost halved in 2017 compared to 2016, helped by the Central Bank’s relatively tight monetary policy and some temporary factors.
The Central Bank continued the financial recovery process for banks bailed out under the new bail-out mechanism. In the January - November 2017 period, aided by higher oil prices, the federal budget primary balance registered a 0.1 percent of GDP surplus compared to a deficit of 1.5 percent of GDP in the same period last year.
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