PRESS: Economic ministry cuts Russia’s 2022 GDP estimate to 2.8%

MOSCOW, Feb 21 (PRIME) -- The Economic Development Ministry has reduced its 2022 gross domestic product (GDP) growth estimate to 2.8% from 3%, Vedomosti business daily reported on Monday quoting sources close to the government and familiar with the amended interim economic forecast.

A government official confirmed the revision, saying that the ministry had submitted its amended forecast on Russia’s social and economic development in 2022–2024 to the government and the presidential administration. The authorities discussed the amended figures at a meeting chaired by President Vladimir Putin on February 17, the business daily reported.

According to the official, the reduction of the GDP estimate does not mean any worsening of economic development, it was adjusted because GDP growth in 2021 outperformed expectations, Vedomosti said.

Besides the GDP, the ministry also suggested revision of other factors, raising the inflation forecast to 5.9% in 2021 from 4% and the average annual price of the Urals oil blend to U.S. $77.7 per barrel from $62.2.

On February 18, the Federal State Statistics Service said that Russia’s GDP grew by 4.7% on the year to 130.795 trillion rubles in current prices in 2021. In September 2021, the Economic Development Ministry expected GDP growth of 4.2% in the year, but in January 2022, it raised the forecast to 4.6%.

(75.7619 rubles – U.S. $1)

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