World Bank worsens forecast for Russia’s 2020 GDP to 1% fall

MOSCOW, Apr 9 (PRIME) -- The World Bank has worsened its forecast for Russia’s gross domestic product (GDP) in 2020 to a 1% contraction from an increase of 1.6%, setting a five-year low record, due to the COVID-19 pandemic and due to the contraction of oil prices,the World Bank said.

The authority also worsened the forecast for Russia’s GDP growth in 2021 to 1.6% from 1.8%, and left the 2022 forecast at 1.8%.

The recovery in 2021 and in 2022 will happen due to the growth of oil prices and weakening of consequences of the coronavirus pandemic, but risks of an economic decrease will remain. Under the unfavorable scenario, the GDP will shrink by 2.2% in 2020, leading to a further expansion of poverty, the World Bank said.

Russia will also have budget deficit as the ruble’s rate against the U.S. dollar weakened by 26% as compared with January 1, 2020, and the oil prices are lower than the breakeven point, the bank said.

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