IMF may downgrade Russian economic outlook

10:42, 25 November 2020 36
International Monetary Fund Photo: Liu Jie/Global Look Press

The International Monetary Fund (IMF) did not rule out that it might revise the forecast for the dynamics of Russia's GDP downwards, despite the signs of a 'sound recovery,' the fund said in a statement following the results of annual consultations with Russian officials.

The IMF noted that they might downgrade the economic outlook due to a high degree of uncertainty.

In October, the fund improved its forecast for a decline in Russian GDP to 4.1%. In June, the IMF predicted a 6.6% decline in the Russian economy amid the COVID-19 pandemic. Now the fund predicts the 2021 GDP growth at 2.8% against the June forecast of 4.1%.

IMF explains the decision by a spike in global coronavirus cases. Meanwhile, the organization approved the macroeconomic measures taken by the Russian authorities to restore the economy amid COVID-19.

The fund welcomed the recent extension of some incentive measures and urged the authorities to be ready for additional steps.

The fund recommended that Russia's Central Bank ease the monetary policy shortly, as they foresee inflation below the target. Moreover, the IMF supported the regulator's market intervention amid instability in the foreign exchange markets. reported earlier that IMF chief commended the G20 for measures to prevent bankruptcies.