The Russian ruble started to rise against the US dollar by the end of 2016 as commodity prices surged and inflation slowed down. Private consumption increased as a result, and a strengthening labour market helped drive down interest rates.
Transport infrastructure projects such as roads, high‑speed railways and airports are ongoing as well as stadium and hotel projects ahead of the 2018 World Cup.
The country is also expected to benefit from a significant increase in the mortgage market in 2016 after contracting 32 percent in 2015. The main factors in this increase are reduced interest rates and the government’s support programme for home buyers.
Large-scale infrastructure projects ahead of the 2018 World Cup are expected to fuel Russian growth over the coming months.
The recession in Russia is expected to have come to an end in 2016, with rising commodity prices, along with a possible end to sanctions to allow for foreign investment, all pointing to improvements in the Russian economy.
President Trump has been welcomed in Russia in anticipation of warmer US-Russian relations and a lifting or easing of sanctions against Russia over their involvement in Ukraine.