Econ ministry improves Russia’s 2020 GDP fall forecast to 3.8%

MOSCOW, Dec 25 (PRIME) -- Russia’s Economic Development Ministry improved its forecast for gross domestic product (GDP) fall in 2020 to 3.8% from 3.9%, Minister Maxim Reshetnikov told the Federation Council, parliament’s upper house, on Friday.

“After a slump seen in the second quarter, our economy has been recovering. Our current GDP estimate is minus 3.8%, which is almost unchanged from the August forecast,” he said.

The labor market has been stabilizing although the situation is still tense, the minister also said.

“The labor market situation has been gradually stabilizing. In November, unemployment amounted to 6.1% as compared with the highest figure of 6.4% seen in August. The registered unemployment has also expectedly decreased,” he said.

Reshetnikov said that the economic crisis has not grew to a systemic one thanks to the government’s steps, and the deepest fall of the economy was not so drastic as the ministry had expected.

He also said that the government can regulate food prices only as a last resort measure.

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