Shock to Russian GDP will be akin to 1998 crisis -Breaking
© Reuters. An overview of Moscow International Business Centre (also known as Moskva-City) as coronavirus spreads. Moscow, Russia. May 14, 2020. REUTERS/Maxim Shemetov
LONDON (Reuters), JPMorgan (NYSE ) announced on Thursday that Russia’s economy would contract 35% by the end of the second quarter, and 7% by 2022. The economy is expected to suffer an economic output decrease comparable to that experienced during the 1998 crisis.
In a note to clients, JPMorgan stated in an article that “a peak-to–trough decline of Russian GDP is now anticipated at approximately 12%.” This compares to 2008 (11%) and 1998 (10%) crises.
JPMorgan expects exports to fall around 13% in this year’s, while domestic demand will decline about 10% and imports to rise by 30%.
“What is clear though, is that Russia’s growing economic and political isolation will lead to lower growth in the long-run,” Shal added.
“We expect Russia’s growth at around zero next year (vs. -1.0% previously) and a trend growth of around 1% in the long-run.”
Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this website’s data including quotes and charts. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.