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. Last Updated: 07/27/2016

OECD Calls for Continued Reforms

The Organization for Economic Cooperation and Development on Monday urged Russia to keep its reforms on track and raised the prospect of an economic boom if everything went according to plan.

But the Paris-based organization, a think-tank for the industrialized West, said Russia still had a lot of work to do.

"One cannot say Russia has completed the major part of the transition. Russia is still in the middle of this process," OECD assistant secretary-general Salvatore Zecchini told a news conference in Paris marking the release of a survey on Russia.

"It will take some time before the Russian Federation becomes a prosperous market-based economy."

The OECD said Moscow needed to keep fiscal and monetary policies under control, stabilize the economy and keep up the momentum to lift restrictions inherited from Soviet days if recent signs of economic growth were to turn to economic boom.

"Some upturn in GDP appears to have begun in the first half of 1995 and may accelerate to annual rates of up to 10 percent in 1996," it said in the survey.

"But if inflation remains high and variable, or microeconomic policies do not ... encourage resources to move toward more productive uses, the upturn could falter. Recorded output could then even fall again in 1996." The OECD forecast a 2 percent rise in gross domestic product in 1996, after falls of 5 percent in 1995 and 15 percent in 1994.