USRBC Forecast: The Russian Economy in 2007 • If the annual average price of Brent Crude in 2007 remains over $60/bbl, the Russian GDP is expected too grow by about 6.5 percent to some $1.2 trillion. • Foreign direct investment will increase to over $30 billion. • Portfolio investment will also increase and the RTS index will close above 2,000. • Fixed capital investment will increase to some 19 percent of GDP. • The retail price index will decline to about 8 percent. • Real incomes will grow by more than 14 percent. • The exchange rate will be around 25 rubles/dollar by the end of 2007. • The value of merchandise exports will be roughly $340 billion (at $60/bbl for Dated Brent) and imports will total nearly $200 billion. • The Central Bank of Russia’s reserves will end the year at over $370 billion. • Accession to the World Trade Organization will take place in late 2007.