European Commission Expects Russia's GDP To Decrease By 5% In 2020 Due To Coronavirus

The European Commission has downgraded its forecast on Russia's GDP dynamics in 2020 due to the coronavirus and the oil prices collapse, and now expects it to see a 5 percent decrease instead of growing by 1.4 percent, as the commission said in its November report

MOSCOW (UrduPoint News / Sputnik - 06th May, 2020) The European Commission has downgraded its forecast on Russia's GDP dynamics in 2020 due to the coronavirus and the oil prices collapse, and now expects it to see a 5 percent decrease instead of growing by 1.4 percent, as the commission said in its November report.

At the same time, the European Commission has upgraded its forecast for Russia's GDP growth in 2021 from 1.5 percent to 1.6 percent.

"Russia faces a double hit from sharply lower oil prices and lockdown-driven deceleration in domestic demand in the context of the COVID-19 outbreak. Against this backdrop a sharp slump in economic activity is expected in the first half of 2020," the European Commission said in its new report.

The European Commission also expects Russia's oil revenues to "shrink by half if current price trends continue, putting further pressure on export-related incomes."