World Bank downgrades forecast for Russia’s GDP dynamics in 2020 to 1% decline

TASS Russian News Agency | Apr 9, 2020 at 11:59 AM

MOSCOW, April 9. /TASS/. The World Bank downgraded the forecast for the dynamics of Russian GDP in 2020. Now the Russian economy is expected to decline by 1% instead of the previously projected growth of 1.6%, according to the organization's report published on Tuesday.

According to the report, GDP is expected to decline by 1% in 2020, which is a five-year low. The main negative impact is a decline in prices for raw materials influences due to reduced demand due to the coronavirus pandemic and expiration of the OPEC+ deal, the report said.

At the same time, in 2021 and 2022, economic growth in Russia is expected to recover amid rising oil prices and reduced negative effects of the epidemic.

According to World Bank forecasts, Russian GDP will grow by 1.6% in 2021, and by 1.8% in 2022. This is a basic scenario, which assumes that the pandemic will end in 2030, and that oil prices and business activity will recover in 2021. In an unfavorable scenario, according to which pressure on commodity prices and the economy will continue, the Russian economy will face a 2.2% drop in 2020.