MOSCOW, Apr 2 (PRIME) -- Russia’s gross domestic product (GDP) may fall 3–5% in 2020, and the situation may even be similar to 2009 when it dropped almost 8%, the Audit Chamber head Alexei Kudrin said at a meeting of President Vladimir Putin with the government late on Thursday.
“Outlooks on the Russian and the global economy have become more pessimistic over the past two weeks. Now we can expect a fall in GDP by a significant figure of 3% to 5% under a moderate scenario. And we can also have a situation similar to 2009 when GDP fell by almost 8%,” Kudrin said.
According to the Federal State Statistics Service, Russia’s GDP fell 7.8% in 2009.
Kudrin also said that Russia’s economy may need state support of 5% of GDP in 2020.
“During that crisis (of 2009) we spent almost 10% of GDP for state support. Of which half was spent on capitalization of banks in various forms and a significant part on covering lost income of the federal budget and additional aid to business in various forms,” he said.
“The situation is not conventional now, and even at lower figures of a fall in GDP, we will need aid in the amount of 5% of GDP or more… The situation on the market differs from what we had before, there is… a shocking situation on the oil market.”
Kudrin also said that the Russian government will have to use non-standard tools to support the economy amid the spread of coronavirus.
“We will have to use non-standard forms of support, which were not seen (in 2009) including direct subsidies to some industries, not the banking sector this time, but the sector of services, which needs help with wage compensation, among other things.”
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