Saturday, November 28, 2020
Home Uncategorized Second Covid-19 wave will accelerate Russia’s GDP decline, but economy will do...

Second Covid-19 wave will accelerate Russia’s GDP decline, but economy will do better than European peers – Kudrin

Also on rt.com

© Nord Stream 2 / Axel Schmidt
Full stream ahead! Denmark removes final hurdle for Russian gas pipeline to Europe

“Thus, this year’s GDP decline will probably be bigger than the official forecast, somewhere from 4 percent to 5 percent,” Kudrin, who served as Russia’s finance minister from 2000 to 2011, stated on Monday. 

While he noted that no precise estimates have been made so far, he believes that the Russian government will also have to adjust the forecast for next year. The Russian Economy Ministry is now predicting that Russia’s GDP will recover by the last quarter of 2021, while the economy is set to return back to sustainable growth of around three percent in 2022. 

Read more

RT
Russian banks boost gold reserves to historic high amid COVID pandemic

Those expectations could turn out to be too “optimistic,” according to Kudrin. The official explained that the average annual growth rate over the last six years was less than one percent and therefore the three percent growth can be expected “if we assume that this is a year of a rebound after the crisis.”

Even if Kudrin’s gloomier forecast is more precise, the Russian economy would still do better than most of its European peers. The EU economy is forecast to shrink by 8.3 percent this year, while the euro area economy will contract by 8.7 percent. 

The global economy is projected to contract by 4.9 percent due to the coronavirus outbreak, the International Monetary Fund (IMF) said in June. The body is set to release a fresh forecast – the World Economic Outlook – later this week.

The IMF previously said that it expects the world’s largest economy, the US, which fell sharply at a rate of 31.4 percent in the April-June quarter, to contract by nearly six percent for the whole 2020. However, some other predictions are more optimistic. For example, Fitch Ratings has recently upgraded its forecast for the US, and now expects its economy to contract by 4.6 percent this year.

For more stories on economy & finance visit RT’s business section

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Camila Cabello Reaction To Boyfriend Shawn Mendes’ Netflix Documentary Shows That They Are A Dream Couple

Two young singers, Camila Cabello and Shawn Mendes, who are also both very successful in their fields, are almost over a year in their...

Hulk Hogan’s Daughter Brooke Flashes Her Toned Midriff As She Poses Up A Storm In Floral Knotted Shirt

The daughter of iconic WWE wrestler Hulk Hogan and famous singer, Brooke Hogan, has shared yet another stunning pose of herself via her Instagram...

Channing Tatum Surprises Everyone With His New Photo While Explaining Why He Did It

The other day, actor Channing Tatum, who shared a post two months ago, shared a selfie of his new style on his Instagram account,...

Eniko Hart Turns Heads In White Sweatshirt And Leggings As She Heads Out For A Stroll With Daughter Kaori

The successful comedian and actor Kevin Hart‘s wife, Eniko Hart, has shared a recent photo of herself with her newborn daughter, Kaori Mai, on...

Recent Comments