In June 2020 business activity in the Russian economy began to recover, helped by the easing of restrictive measures, in combination with budget measures in support of households and the corporate sector. This is stated in the next issue of information-analytical material “Economics”.
Slowed the decline in industrial production, freight turnover and transport. There has been a recovery in the volume of construction works. Continued growth in agriculture.
Significantly increased consumer activity. Growth in retail trade turnover accelerated in the segment of both food and non-food items. Many indirect indicators have shown signs of recovery and investment demand.
However, in the labour market, the tension remained. The lower incomes, incomplete removal of restrictions on the operation of enterprises of the service sector, and weak external demand will continue to restrain business growth for 2020. The volume of GDP in 2020, according to Bank of Russia estimates, will decline by 4.5–5.5 percent. The influence of aggregate demand on the growth rate of consumer prices will remain disinflationary.
Photo preview: Eugene Reasonable / Bulletin TASS