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Kudrin allowed Russia's GDP to fall to the level of the 2009 crisis

Kudrin allowed Russia's GDP to fall to the level of the 2009 crisis
Photo by: kremlin.ru

The forecasts for the development of the Russian economy have worsened. As the head of the Accounts Chamber, Alexei Kudrin, said at a meeting of the president with members of the government, in a fairly moderate version, the fall in GDP this year could be from 3% to 5%.

At the same time, Kudrin did not rule out that a situation might be similar to 2009, when GDP fell by almost 8%. Then the average oil price was $ 61, and this year it will be even less, while now more unusual and shocking situations are occurring in the oil market.

The head of the Accounts Chamber said that in the crisis of 2009, the federal authorities spent almost 10% of GDP on support: half went to the capitalization of banks, a significant part to compensate for the shortfall in federal budget revenues and additional assistance to business.

“Now the situation is non-standard. Even if the GDP does not fall as deep as last time, the total amount of support from 5% of GDP and above is most likely to be needed, ”noted Alexei Kudrin.

He advised to consider an additional set of support measures and not to postpone it. He noted that the amount of support should be substantial, for this you will have to spend more from the reserve fund.

Vladimir Putin admitted that the situation in the economy is not simple: Russia has experienced a double blow - from the coronavirus pandemic and falling prices for the main export commodity - oil. He said that the authorities, together with the main producers and consumers, will have to work out solutions that will mitigate the situation on the market.

“For our economy, it is indeed a very serious challenge. Now, of course, the situation has its own specifics, nevertheless, we have experience, ”the president said.

Now the government is working on second economic support package. The Federal Ministry of Finance has reserved 1,4 trillion rubles to combat the spread of coronavirus infection and implement anti-crisis measures.

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