How much will the economy shrink and when to expect its recovery? What will it take? How will consequences of the crisis differ in Russia an in the rest of the world? How will household income be affected? These were some of the questions discussed at Finam’s online conference titled “Russian Economy - Disastrous Quarter”.
Igor Nikolaev, the Director of FBK GT’s Strategic Analysis Institute, was one of the speakers at the conference. He mentioned that the Russian budget is unlikely to be cut, that is why all social services will be provided in full. However, certain cuts are possible in 2021 as the oil price will not recover and the economy will not start growing rapidly.
“When there are still some money left, it is necessary to support households. If people have money, they ensure consumer demand and keep the economy alive. Of course, the demand will concern food, medications, related goods and services. The economy will shrink but it will be functional,” he said.