The Russian economy has successfully overcome the negative consequences of the coronavirus crisis. This was stated by Finance Minister Anton Siluanov, quoted by RIA Novosti.
This is how he commented on the decision of the international agency Fitch, which kept Russia’s long-term foreign currency credit rating at ‘BBB’ with a stable outlook.
“The second confirmation of the sovereign credit rating of the Russian Federation since the beginning of the year, this time by Fitch Ratings – at the BBB level with a stable outlook – is yet another evidence of the successful overcoming of the negative consequences of the coronavirus crisis by the Russian economy,” Siluanov said.
He also noted that according to Fitch Ratings, Russia’s high resilience in the face of external shocks was ensured by “a balanced budget policy in combination with inflation targeting and a floating exchange rate regime carried out by the Bank of Russia.” “The further accumulation of fiscal reserves and the entry of the domestic economy onto the trajectory of sustainable growth in the future may become the basis for the agency to revise the credit rating of our country upward,” the minister added.
The international rating agency Fitch has kept Russia’s long-term foreign currency credit rating at ‘BBB’ with a stable outlook. The ranking reflects a strong and consistent policy framework that supports improved macroeconomic stability and resilience to shocks, including those associated with the coronavirus pandemic.
Earlier in January, it was reported that the coronavirus pandemic was the most powerful blow to the federal budget of Russia since the beginning of the century. The effect of the pandemic has exceeded the effect of the 2008-2009 and 2014 crises. In the current crisis, the authorities are faced with a 7 percent decrease in budget revenues compared to 2019, while spending in nominal terms increased by 25 percent and in real terms by 21 percent. In particular, spending on health care almost doubled, spending on social support for the population – by 43 percent, and spending on regions – by 39 percent.