EBRD: Russia’s GDP to fall 4.5% in 2020 due to low oil, COVID-19

LONDON, May 13 (PRIME) -- Russia’s gross domestic product (GDP) will decrease by 4.5% in 2020 due to lower oil prices and coronavirus and will grow by 4% in 2021, the European Bank for Reconstruction and Development (EBRD) said on Wednesday.

“With its economy still dependent on oil, the fall in oil prices was significant, particularly in light of the fiscal stimulus needed to offset the impact of the pandemic. The Russian economy is expected to shrink by 4.5% in 2020, followed by a rebound of 4.0% in 2021,” the report said.

The bank expects that reserves of Russia’s National Wealth Fund and the country’s foreign exchange and gold reserves will allow Russia to overcome the crisis caused by the coronavirus pandemic and low oil prices.

Future economic growth will depend on oil prices and the extent and duration of social distancing measures, the bank said.

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