Forecast of social and economic development of the Republic of Tatarstan for 2016 presented at session of Tatarstan State Council

On October 17, at the 12th session of Tatarstan State Council, Minister of Economy of the republic Artem Zdunov presented a forecast of social and economic development of the Republic of Tatarstan for 2016 and planned period of 2017 and 2018.

He informed that the forecast was presented on the basis of the basic scenario of the development of Russian economy. The oil price is expected to make $60 a barrel in 2016 and $65 a barrel in 2017. The dollar exchange rate is said to make 56.8 rubles to US dollar in 2016 and 54.5 rubles to US dollar in 2017.

According to the forecast of Russian Ministry of Economic Development, by 2018 the international oil price will increase and make $70 a barrel, the dollar exchange rate will make 53.2 rubles to US dollar.

In 2016 the GRP of the republic will make 102.2 per cent, in 2017 - 103.2 per cent, and 103.4 per cent in 2018.

Oil processing, chemical, petrochemical and engineering industries will make the main contribution to industrial production growth in the forecast period. In 2016 the industrial output will make more than 1 trillion 991 bln rubles, in 2017 – more than 2 trillion 203 bln rubles, in 2018 - 2 trillion 367 bln rubles.

The industrial production index will make 102 per cent in 2016, 105.2 per cent in 2017, and 103 per cent in 2018. The agricultural output will make 233.8 bln rubles in 2016, 246.4 bln rubles in 2017, and 255.8 bln rubles in 2018. The share of fixed investments in GRP will make 31 per cent due to unstable geopolitical situation and tension in the capital market and restricted access to credit resources.

The forecast on housing construction was made up in accordance with the state regional and federal programmes. It is planned to build 2.4 mln square metres of housing in the republic every year.

Corrections in salaries fund in 2016-2017 are connected with the decrease of the forecast average salary at large and medium-sized enterprises and slowdown in real sector of economy. The increase of level of the cost of living is expected in the medium term.