Putin says Russian economy is on the mend

[MOSCOW] Russia's economic contraction is slowing, capital flight is fading and real wages are starting to recover, President Vladimir Putin said on Friday.

Speaking at an annual end-of-year news conference, Mr Putin said the Russian economy was on track to contract by 0.5-0.6 per cent this year, while inflation for the whole of 2016 was likely to reach 5.5 per cent.

Mr Putin said the budget deficit was seen at 3.7 per cent of gross domestic product, while net capital outflow was seen at up to US$17 billion.

REUTERS