Russian economy may drop below 8% in Q2 2020 – Central Bank

TASS Russian News Agency | Jun 29, 2020 at 8:04 PM

/Update/

MOSCOW, June 29. /TASS/. Russia's GDP may fell by more than 8% year-on-year in the second quarter of 2020, the Central Bank said on Monday.

"According to estimates of the Bank of Russia, GDP may fall below 8% year-on-year in the second quarter of 2020 because of the significant influence of restrictive measures on the economic activity and due to external demand contraction," the regulator said.

Dynamics of end consumption of households and export will make the greatest contribution to GDP decline, the Central Bank said. Gradual softening of lockdown measures in foreign countries and in Russia will form conditions in the third quarter of this year for the recovery of economic activity, the regulator noted.

"Nevertheless, annual rates of economic growth in the second quarter will remain negative. GDP is estimated by the Bank of Russia to decline by 4-6% in 2020," the Central Bank said.