Russia’s GDP drop in 2020 can be smaller than expected – Central Bank

TASS Russian News Agency | Sep 28, 2020 at 7:18 PM

/Update/

MOSCOW, September 28. /TASS/. The decline of Russian GDP can be more moderate than the earlier expected range of 4.5-5.5%, the Central Bank says on Monday.

"GDP data for the second quarter of 2020, along with current indicators of economic activity highlighting dynamic recovery of demand and output in the third quarter of 2020, give grounds to expect that the GDP drop as of 2020 year-end can be more moderate than the range of 4.5-5.5% in the outlook of the Bank of Russia, posted according to results of the July meeting," the regulator says.

At the same time, the recovery of business activity in the Russian economy in August - September continued at a more moderate pace than in June - July, the Central Bank says. "The recovery continues predominantly on the account of industries focused on domestic consumption, as a result of softening of lockdown measures, implementation of budget support measures, and pent-up demand of households. However, it should be noted that the output has already fully returned to levels of the second half of 2019 - early 2020 in a number of processing industries," the Bank of Russia notes.

The regulator can revise its forecast for the national GDP dynamics, Governor of the Central Bank Elvira Nabiullina said earlier. GDP in Russia fell by 8% in the second quarter of 2020, slightly below expectations.