Page 45 - RusRPTJun20
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"Manufacturers do not foresee conditions improving over the next year, as expectations turned pessimistic for the first time on record. Our current forecast for industrial production signals year-on-year contractions in output until the second quarter of 2021. Fears of a prolonged recovery partially drove a marked fall in employment as excess capacity increased."
4.3.2 Corporate profits dynamics
Russia was on course for its second strong year of growth in the corporate sector before the double whammy hit. Corporate profit were up a strong 24.8% y/y to RUB3,086bn in February, which followed on from the 42% growth y/y to RUB2,472bn the year before.
The recession caused by the 2014 crisis had clearly ended in the second half of 2018 but business have had only about 18 months to enjoy the recovery before they were plunged back into a fresh crisis. Those profits are bound to disappear at the end of the first quarter.
45 RUSSIA Country Report June 2020 www.intellinews.com
