European Commission raises Russia's GDP outlook for 2021

European Commission raises Russia's GDP outlook for 2021

The European Commission has raised the outlook for Russian gross domestic product (GDP) growth in 2021 to 2.7% from 2% and the outlook for 2022 to 2.3% from 1.9%, the authority said in a statement on Wednesday.

The Russian economy shrank by 3% in 2020, the European Commission said, changing the estimate from 4.2%.

"Downside risks on the external side are related to uncertainty around oil demand and oil prices as well as further escalation of geopolitical tensions, including the possibility of further sanctions," the European Commission said.

"On the upside, higher oil revenues might boost incomes, consumption and investments more than expected as output restrictions are lifted. Higher demand for technology sectors during the pandemic could result in a more efficient use of technology and therefore in higher productivity growth," the Prime news agency cited the statement as saying.