The scale of the crisis in Russia

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www.vsyako.netPhoto: Kirill Kallinikov / RIA Novosti

Experts evaluated the extent of the impact of coronavirus on the Russian economy and said that the country is in the depths of the crisis relates to a number of relatively prosperous countries on indicators such as GDP decline, rising unemployment and the dynamics of the index of industrial production. This is stated in the report of the HSE “Economic and social consequences of coronavirus in Russia and in the world.”

Russia’s economy by the end of 2020 is expected to shrink by 5.5%, which actually corresponds to the average indicator (decrease of global GDP is projected at 5 to 7.1 percent). Unemployment during the crisis, jumped only 1.6 percent, while industrial indicators index fell by less than 10 points, to 90.4 in January-may this year.

The coronavirus has become a serious test for the Russian budget, whose income during the crisis fell due to lower demand for energy, which is the main export product of Russia. For the first half of 2020, the Federal budget revenues decreased by 5 percent to 9.1 trillion rubles. Expenses for the same period increased to 10 trillion, which is almost 30 percent more than in the same period of 2019. It is expected that the budget deficit in Russia in 2020 will amount to 5 percent of GDP.

Despite spending trillions, Russia was among the outsiders of the G20 in terms of supporting the economy. It is estimated only 2.9 percent of GDP. The researchers note that the most active among the States of the “twenty” own economy supported by developed countries, e.g., Germany, Italy, Japan, UK and France. However, in such States, affected to a lesser extent support directly through the budget, preferring to provide government guarantees or quasi-public use other tools. Countries with the highest spending budget experts have called the United States and Australia. Among the most affected G20 experts attributed South Africa, Italy and France, where there was the largest decline in industrial production. Also a large-scale crisis originated in India, USA and Canada, which recorded a surge in unemployment.

Previously Rosstat reported that real disposable incomes of Russians fell by eight percent in three months. This was a record fall since the beginning of 2013. The country’s GDP in June 2020 decreased by 6.4% in annual terms.

Video, photo All from Russia.

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