Central bank may improve outlook of Russia’s 2020 GDP decline

MOSCOW, Sep 28 (PRIME) -- The central bank may improve its 2020 Russia’s gross domestic product (GDP) decline forecast from 4.5–5.5% after receipt of the April–June GDP data, the research department of the regulator said in a research note on Monday.

In mid-September, Central Bank Chairwoman Elvira Nabiullina said that the bank may adjust its macroeconomic forecast in October.

“According to the July forecast of the Bank of Russia, the GDP will fall by 4.5–5.5% in 2020. This estimate may be revised down basing on the latest GDP data for the second quarter and the latest indicators that signal a faster recovery of economic activity,” the research note read.

The continuous softening of restrictions, a soft monetary policy, and government support of individuals and businesses created conditions for expansion of economic activity. However, the fast recovery roots in pent-up demand and social support to a large degree, this is why it is slowing down gradually, the research note said.

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