Putin Predicts Russia’s Budget Deficit Will Reach 2% of GDP by 2027
Russia's Economic Outlook and Budget Projections
Budget Deficit Forecast for 2027
MOSCOW, Sept 17 (Reuters) - Russian President Vladimir Putin said on Thursday the country's budget deficit was projected to be around 2% of gross domestic product in 2027.
Assumptions Behind the Forecast
"According to preliminary estimates... the federal budget deficit is expected to be around 2%. This is based on a very conservative oil price assumption... of about $50 per barrel," Putin said at a government meeting on economic issues.
Impact of Oil Prices and Energy Revenues
Rising Oil Prices and Revenue Increases
He said that Russia was seeing oil prices rise on global markets and therefore expected oil and gas revenues to increase in the coming months. He added that higher energy revenues would allow the government to replenish the National Wealth Fund, which serves as a financial buffer for the state.
Role of the National Wealth Fund
Putin also said Russia's economy was expected to grow by up to 1% in 2026.
(Reporting by Reuters; Writing by Anton Kolodyazhnyy; Editing by Joe Bavier and Alex Richardson)
