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Accounts Chamber: "Spread of coronavirus will slightly affect Russia's GDP"

10 February 2020 17:29 (UTC +04:00)

The spread of the new coronavirus will have little effect on Russia's GDP, within 0.1-0.2 percentage points, head of the Accounts Chamber Alexei Kudrin told reporters, APA reports citing TASS.

"This will affect the pace of economic growth, but not significantly. It may be within 0.1-0.2 percentage points," he said.

In his view, Russia's income will decline due to lower oil consumption by China.

"This will affect oil, and we see it already. Therefore, it will affect incomes even if the volume of oil consumption (in China - TASS) is restored by the end of the year. But, most likely, in annual terms, it won’t fully restore by the end of the year and will still be less than last year. This will affect both prices and incomes of our country, "Kudrin said.

Nevertheless, according to the Chairman of the Accounts Chamber, Russia has the opportunity to increase the growth rate of the economy.

"If the government tries to build up potential using other factors - as you know, there are large private resources in Russia today, including those that are not fully invested - if the mood changes, and this can happen regardless of the coronavirus, then we can even build up (economic) growth rate. Although we lose in one sector, there are still other opportunities," Kudrin concluded.