The Russian economy contracted by 12 percent in April

The economic development Ministry estimated Russia’s GDP decline in April this year. Review of pattern of business activity published on the website of the Ministry.

According to the Ministry, the Russian economy decreased over the month by 12 percent in annual terms. The reason for this was the introduction of holidays in the country because of the epidemic of the coronavirus, and the persistence of a negative situation for foreign trade and quarantine measures in other countries. In January-April GDP decline is estimated at 1.9 percent.

It is noted that the largest decline was observed in the sectors oriented to consumer demand. In particular, the volume of paid services decreased in April by 37.9 percent. This is due to restrictions of activities in the field of leisure, culture and sport and consumer services, said the Ministry.

According to the Bank of Russia, the country’s GDP for the year will fall within the four to six percent. Bloomberg predicted that the country’s economy in the second quarter of 2020 collapses 16 percent, which is the worst quarterly figure since the early 1990s.

© 2020, paradox. All rights reserved.