After responding to the Covid-19 pandemic, the country intends to play a leading role in the global recovery. But it must deal with issues such as inflation and Western sanctions.
Russia has tamed the Covid-19 pandemic and intends to move forward and even play a leading role in the global recovery. This is the message reiterated at the St. Petersburg Economic Forum (SPIEF), which will be held from Wednesday, June 2 to Saturday, June 5. The only holding of the forum after the 2020 brackets proves this statement of intent.
“Nothing that looks like a disaster has ever happened, Vladimir Putin argued in his concluding speech on Friday. Given the conditions, this was possible, but it did not happen. “ In fact, these figures prove that the Russian President is right-if we ignore the death rate as he systematically did (compared to the commonly observed death rate, the number of deaths recorded between April 2020 and April 2021 has increased 465,000 people).
The Russian economy was temporarily constrained, and its contraction was smaller than that of European economies. According to Bloomberg News, after a 3.1% drop in 2020, gross domestic product (GDP) should return to its pre-crisis level by the end of 2021.Kristalina Georgieva, Managing Director of the International Monetary Fund, even said that she “admiration” Worked for Russia’s financial management during the pandemic.
The main problem in the presence of Russian officials is: inflation. Although it seems reasonable at first glance (5.5% in April), this indicator masks the difficult reality facing families. First, the increase in food prices is particularly pronounced; then, it is superimposed with the continued decline in income since 2013. In the name of the main macroeconomic balance, state support for businesses and households remains weak, including during the crisis (approximately 4% of GDP).
There are rare disagreements within the government, and we can see Finance Minister Anton Silouanov warning his colleagues not to adjust prices in an overly artificial way. In the winter of 2020, under the impetus of Mr. Putin, such attempts ended in failure.