On March 12, Aleksey Vedev, Head of Financial Studies Department of the Gaidar Institute, gave a video-interview to Current Time editorial.
The situation largely reminds beginning of 2015. Ruble depreciation, high US Dollar and Euro will undoubtedly reduce growth rate of travelling abroad. This means a rise of prices for imported goods and an overall acceleration of inflation up to 10% per annum as well as rise in prices for Russian goods, maintenance of the trend, which lasted almost 6 years. This is a reduction of real disposable household incomes.
It would be fine if this crisis had a V-shape, oil prices rebounded as they did in 2009, when they dropped significantly in the beginning of the year but the overall situation had stabilized by May 2009.
At present, the new government discuss challenges related to achievement of sustainable economic growth and at this time, recession is clearly unwanted. Therefore, it is desirable that at least global prices for raw materials and at stock exchanges be adjusted”, Aleksey Vedev summed up.