European Commission: Russia will avoid a recession

European Commission experts believe that Russia's economic growth will slow in 2009 1%, but no recession is expected. "Russia can avoid a recession, thanks to a package of fiscal incentives and a favorable impact of a more flexible exchange rate in relation to the demand for domestically produced goods and services" - in the interim forecast of the European Commission for 2009 year. According to European officials, Russia's economic growth to slow from 5.9% in 2008 to about 1% in 2009, and then return to the level of 2,25% in 2010. In this case, the European Commission added that the price of commodities used in the preparation of the forecast based on current market quotations, "Interfax." To forecast oil prices also took into account quotations of oil futures. It is expected that the price of Brent crude to average 52.1 dollars per barrel in 2009 and 61.7 dollars per barrel in 2010, respectively, "- said the European Commission. At the same time in Brussels, forecast that GDP in the EU will decrease by 1,8% in 2009, and in 2010 will grow by 0,5%. "The reason for this was the effect of the intensified financial crisis on the real economy, the ensuing global recession, which appeared in a serious reduction in world trade, industrial production and, in some mills , the correction in housing markets ", - said the European Commission. However, as expected, government consumption and public investment will have on the European countries a positive impact." Facilitation of inflationary pressure have a positive impact on personal consumption. Tax policy measures taken since August 2008, will limit the decline in GDP growth to 0.75 percentage points this year. The severity of the economic downturn have affected employment and government funding in the period under review, "- said in a forecast.