Russian banks predicted that the growth of the country’s economy may slow down from 1.4 percent in 2013 to 1.25 percent in 2014. Specifically, Vladimir Kolychev, the chief economist at VTB Capital, noted that slower rates of growth are associated with lower rates of inflation. The inflation is expected to be at 3.9 percent instead of the 6.4 percent figure predicted earlier. According to Kolychev, wages in 2014 may not grow as fast as they did in 2013, while consumer demand will not rise as much as well. There will be fewer jobs too.

Significant efforts were undertaken to implement structural measures for boosting the Russian economy in the long run. Mr. Kolychev commented that no immediate impact was readily apparent yet. The service rates of the state monopolies continue driving inflation upward. Measures taken to freeze those rates resulted in an increased burden on the state monopolies. As a result, the government-owned companies could not hire as many new employees as they normally did for purposes of cutting costs. For its part, the Central Bank of Russia stated that it does not intend to decrease interest rates before the middle of 2014. Mr. Kolychev predicted that an increase in the GDP is likely to lead to a downward change in the interest rate.

Inflation is expected to drop during the second half of 2014, which will be an advantageous development that will help keep the interest rates low. The prices for food products are likely to increase, albeit at a low rate. Mr. Kolychev suggested that large scale spending programs initiated by the government will accelerate economic growth after the middle of 2014. Projects requiring high spending are scheduled to start in the first half of 2014.

The change in the exchange rate is expected to be six percent, and the rouble-to-dollar exchange rate is predicted to be at 35 roubles to one dollar. The growth of imports into the Russian Federation may slow down as a result of a decreasing demand.