OLGA IZRYADNOVA: “STATE SUPPORT ALLOWED RUSSIA TO AVOID MAJOR ECONOMIC CHALLENGES”
“Finanz.ru” published the opinion of Olga Izryadnova, Head of Structural Policy Department, pointing out that support of the authorities provided to Russian economy, allowed to impede the decline in GDP and prevent spurts of unemployment. The government took decisions in a timely manner, while the state support should be prolonged at least until the end of this year”.
“These measures allowed for easing negative impact of the pandemic on numerous spheres of the economy and support disadvantaged groups”, Olga Izryadnova noted.
“These measures allowed for easing negative impact of the pandemic on numerous spheres of the economy and support disadvantaged groups”, Olga Izryadnova noted.
According to the expert, the government action helped Russia to overcome the crisis better compared to other countries. The government acted without delay, and Russia managed to avoid the decline in socially critical industries, for example, in construction.
“In this respect, it is very important to avoid decline in construction, because this industry has a high social meaning. If growth in investments is accelerated in H II, as forecasted, there will be additional job opportunities with further impact on all other industries. Aviation transport reached good dynamics against previous period due to stimulating government measures that the population responded to”, assumed Olga Izryadnova.
According to Olga Izryadnova, the Russian economy will be able to function independently even after the state support ended, however, since it has not fully recovered, it is reasonable to prolong the state support for the next year.
“It is difficult to predict, what happens next, as the situation remains uncertain: the industries’ incomes dropped, while the fiscal effect still remains in the negative territory. Currently, the economy acts independently, nevertheless, there should be a mandatory state support. It is critical to continue supporting the economy and then, the situation will be far better by year’ end”, the expert of the Gaidar Institute believes.
Olga Izryadnova concluded: “To make comprehensive forecasts, it is reasonable to handle data for 9 months or at least the estimates of the GDP utilization for H I. The overall estimation of GDP will be published in the coming weeks, and then it will be possible to make forecasts”.
“In this respect, it is very important to avoid decline in construction, because this industry has a high social meaning. If growth in investments is accelerated in H II, as forecasted, there will be additional job opportunities with further impact on all other industries. Aviation transport reached good dynamics against previous period due to stimulating government measures that the population responded to”, assumed Olga Izryadnova.
According to Olga Izryadnova, the Russian economy will be able to function independently even after the state support ended, however, since it has not fully recovered, it is reasonable to prolong the state support for the next year.
“It is difficult to predict, what happens next, as the situation remains uncertain: the industries’ incomes dropped, while the fiscal effect still remains in the negative territory. Currently, the economy acts independently, nevertheless, there should be a mandatory state support. It is critical to continue supporting the economy and then, the situation will be far better by year’ end”, the expert of the Gaidar Institute believes.
Olga Izryadnova concluded: “To make comprehensive forecasts, it is reasonable to handle data for 9 months or at least the estimates of the GDP utilization for H I. The overall estimation of GDP will be published in the coming weeks, and then it will be possible to make forecasts”.