ALEKSEY VEDEV: BUDGET DEFICIENCY AND ACCELERATION OF INFLATION ARE ANTICIPATED AT YEAR END

Aleksey Vedev, Head of Financial Studies Department of the Gaidar Institute for Economic Policy, shared his expert ideas with TASS on the current situation in oil market and depreciation of Ruble. 
The expert believes that oil prices and the value of the exchange rate will recover their previous position, nevertheless, budget deficit and accelerated inflation are likely to happen at the end of the year. “I think, a rather fast correction is possible within a month or a month and a half.”
Aleksey Vedev noted: “After all, the oil price may grow again up to $40 from $26. I do not believe in oil prices at $60–70 per barrel, though, it may reach the cut-off price of $43.

The expert of the Gaidar Institute concluded: “I think it is unlikely that deficit will be roughly more than 3%, but one has to take into consideration that deficit is also determined by expenses, and expenses are allegedly man-made. 
This is a reality and eventually, money should be used from reserves in such a situation, from the NWF”.


Thursday, 19.03.2020