Econ ministry: Recovery plan may raise ‘21 GDP 2.8% growth forecast

MOSCOW, May 27 (PRIME) -- Russia’s Economic Development Ministry may raise its forecast for 2021 gross domestic product (GDP) growth from 2.8% thanks to the national economic recovery plan, Minister Maxim Reshetnikov said on Wednesday at a meeting of the parliament’s lower chamber State Duma.

“We expect the economy to recover by 2.8% in 2021, but we are adjusting this forecast taking into account the measures of the national economic recovery plan, which the government is finalizing now,” he said.

The combined amount of all anti-crisis measures has reached 3.3 trillion rubles during the coronavirus pandemic, he said.

The current oil prices of U.S. $30–35 per barrel allow the Russian budget to fulfill all obligations.

“This year’s oil price estimate is $31 for the Urals blend and $35 for 2021. I shall say that judging by our macroeconomic policy and the accumulated forecasts this level allows us to be absolutely sure and speak about fulfillment of all (budget) obligations,” he said.

The ministry also offered prolongation of the moratorium on inspections of businesses for 2021.

“We suggest a maximum prolongation of the decisions that we made on moratoriums and restrictions of inspections, and also prolongation of the ‘automatic license’ principle for 2021,” he said.

The Economic Development Ministry expects Russia’s GDP to contract by 5% in 2020 and to rise by 2.8% in 2021, by 3% in 2022, and by 3.1% in 2023.

(71.1408 rubles – U.S. $1)

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