MOSCOW (Reuters) - The International Monetary Fund improved its forecast for Russia’s economic growth this year to 1.4 percent, saying easier financial conditions and higher oil prices would help drive a recovery, a regular IMF report showed on Friday.

The Fund, which in October forecast the economy would grow by 1.1 percent this year, said Russia was exiting a two-year recession thanks to an effective policy response from the government and because the country had robust buffers.

The IMF cautioned, however, that Russia’s medium-term economic outlook would remain subdued, seeing annual economic growth at around 1.5 percent.