The Bank of Russia has projected a 1.5% to 2% growth of the country’s economy in 2020 in its latest forecast, despite a rapidly spreading coronavirus outbreak across the globe and a drop in production in January, Kommersant reports.
In its report, the central bank added that a heightened up domestic demand alongside an unprecedented growth in budget expenses would likely to ramp up Russia’s economic activity.
The regulator also cautions a peevish growth momentum over the coming months as a number of newer cases of a novel Coronavirus infection had been rising rapidly.
“A significant risk for the forecast remains the weakening of external demand amid a possible slowdown in global economic growth due to the spread of coronavirus and other factors,” the regulator said.
In another report on monetary policy last month, the Bank of Russia laid out a forecast baseline scenario according to which GDP growth rates for the first quarter of 2020 will return to a level slightly above 2%. In the future, this indicator will accelerate extremely slowly – by the end of 2022 the central bank estimates it at 2.2%.
Russia is the sixth-largest economy across the globe in PPP (Purchasing Power Parity) and the eleventh-largest in nominal GDP (Gross Domestic Product).