Financial pulse: economic activity has stabilized at low levels

Operational indicators show a stabilization of business activity in the Russian economy in the beginning of may at low levels recorded in the sixth issue of the weekly analytical review of the “Financial pulse”.

However, over the last weeks has considerably increased the influence of disinflationary factors associated with the decline in consumer demand that will constrain the price dynamics also in the coming months. The easing of restrictions on the pandemic of coronavirus in ongoing state support measures will support economic recovery. Its speed will depend on the spread of coronavirus infection and the possible negative secondary effects of restrictive measures.

The Bank of Russia continued to monitor the progress of implementation of the existing measures and introduce new measures to support citizens and SMEs in the context of pandemic coronavirus. According to surveys by the Bank of Russia, the level of approval of applications for debt restructuring in General is high. While still a large potential for increasing the debt restructuring of enterprises of small and medium businesses of the most affected sectors in the framework of vacation credit. The introduction by the Bank of Russia repo auctions for periods of 1 month and 1 year will create for banks additional incentives to the restructuring of current loans and the issuance of new long-term loans.