Russian economy still has potential for recovery, says Minister of Economy – Business & Economy
MOSCOW, September 8. / TASS /. The Russian economy has “recovered” after the novel coronavirus pandemic, but its potential for recovery has not yet been exhausted, Economic Development Minister Maxim Reshetnikov told reporters on Wednesday.
He commented on the statement made by the President of the Accounts Chamber Alexeï Kudrin during the plenary session of the Moscow Financial Forum.
“The country’s economy is confident. According to the results of the second quarter, Russia’s GDP has fully recovered: on average in the first quarter of 2021, it is 0.3% more than the level before the pandemic, in July – plus 0.4%. According to our estimates, the potential for economic recovery has not yet been exhausted – there is room for growth in industries which have not yet reached the level before the pandemic (mining, passenger transport, consumer services – TASS), “Reshetnikov said.
The Minister noted that the recovery of the Russian economy is evidenced by the improvement of the situation on the labor market, a positive image in the sectoral context, as well as a positive dynamic in the field of investments.
“The fact that companies invest money in their development, by increasing their capacities, shows that the economy has recovered,” said Reshetnikov, referring to the investment situation. According to him, today, investments are being made in the sectors which have been strongly affected by the pandemic: hotels, restaurants, commerce.
The minister added that the August payments to parents for their school children and the September payments to retirees and military personnel will further support consumer demand and the growth of the economy as a whole.
Earlier on Wednesday, speaking at the forum, the head of the Russian Accounts Chamber Alexei Kudrin said the crisis caused by the spread of the coronavirus was not completely over, although many countries will reach levels of Pre-crisis GDP this year.
“This pandemic crisis is not over yet. Although this year many countries will reach the pre-crisis level in terms of GDP, and our country, as Mishustin said has come out of it,” Kudrin said. .
“According to him, the crisis caused by the pandemic is not standard in its nature. It does not work in the same way that the mechanisms of other ordinary economic or financial crises work. We must prepare for greater uncertainty and greater flexibility in order to resolve the problems of a non-standard crisis, “he said.