Russian Economy Recovering As Scheduled - Central Bank Chief

Russian Economy Recovering As Scheduled - Central Bank Chief

The recovery of Russia's economy following a sharp fall in the first half of the year is progressing in line with forecasts, Russian Central Bank Governor Elvira Nabiullina said on Thursday, Sputnik reports.

"For the past few months, we have seen a gradual recovery of the business activity and stabilization of financial markets. Borrowing is also reviving. I should say that the economic decline was less than many expected. The recovery, albeit uneven, is progressing in line with our forecast," Nabiullina said at a retreat of the Association of Banks of Russia.

According to the latest Central Bank economic forecast, released in July, the Russian economy is expected to shrink 4.

5-5.5 percent during 2020 year-on-year, with the year-end inflation rate expected to fall within the 3.7-4.2 percent range, with the target level set at 4 percent.

This somewhat narrows down the range of anticipated yearly economic decline in Russia set at 4-6 percent in the Central Bank's previous forecast in mid-April. As expected, the lifting of the coronavirus-related restrictions in Russia contributed to a greater clarity of the economic outlook and reversed the sharp downturn of the year's second quarter.

The economic growth forecast for the next two years is currently set at 3.5-4.5 percent for 2021 and another 2.5-3.5 percent for 2022.