Moody's - Russia’s GDP to grow by 2.3% in 2021

Russia's real GDP growth will recover to 2.3% in 2021, Moody's Investors Service said in a report published yesterday.

"Following the sharp 2020 contraction, we forecast Russia's real GDP growth will recover modestly to 2.3% in 2021 as oil prices remain subdued," the agency said.

According to the agency, the economic impact of the pandemic, together with the fiscal response, will push the budget to a large deficit, with a gradual fiscal consolidation forecast in the coming years.

"As a result, government debt will rise to just above 20% of GDP by year-end 2021, compared to 13.9% in 2019, although it is still modest relative to rating peers," Moody's analysts added.