Rosstat assessed the degree of the fall of the Russian economy for 2020, according to a statement on the agency’s website. At the end of last year, the reduction was 3.1 percent.
The fall was the maximum since 2009 – then, also against the background of the global financial crisis, it was 7.8 percent.
At the same time, Rosstat notes that the estimate is preliminary and may subsequently be updated. In the middle of last year, the Ministry of Economic Development predicted a decline in GDP by 3.9 percent, analysts converged on 3.7 percent.
Rosstat names the coronavirus pandemic and the restrictions introduced to combat its spread as the main reasons for the fall of the Russian economy. The most affected sectors were the service industries, in particular the hotel business, cultural events and professional sports.
In 2020, households reduced spending by 8.6 percent, overall consumption decreased by 5.2 percent, despite the increase in government spending.