Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Russia’s Economy Hits Pre-Coronavirus Size – Central Bank

As Russia’s largest cities start reintroducing coronavirus restrictions, economy hits recovery milestone.

Russia's economy contracted by 3% during 2020. Anton Novoderezhkin / TASS

Russia’s economy has become one of the first in the world to reach its pre-coronavirus size, Russia’s Central Bank governor said Tuesday.

In a speech to lawmakers, Elvira Nabiullina said the Russian economy had regained all its losses since the start of the coronavirus pandemic last spring.

“The economy has recovered to its pre-crisis level, and in many industries it has exceeded it and continues to grow,” she said.

Russia’s economy contracted by 3% in 2020 — knocked by a six-week nationwide lockdown, prolonged closures of service industries and cuts in oil production in a bid to stabilize prices.

Economists say Russia’s economy suffered significantly less than others, in part due to the small size of the Russian service economy — which has been hit hardest by the pandemic — and the large role of state in the economy, which has cushioned the economic fallout. It has also bounced back strongly during the first months of 2021, with no significant coronavirus-related restrictions in force and many large companies reporting record profits.

A looming third wave of infections, however, could yet disrupt the recovery. Moscow workers are currently on a week-long paid vacation, designed to keep them out of offices and off public transport networks in order to act as a circuit breaker, with cases having risen exponentially in recent days. Restaurants, cafes and bars will be forced to close at 11 p.m. and companies must ensure at least 30% of their non-vaccinated staff are at home.

A number of other cities and regions, including Euro 2020 host city St. Petersburg, have also reintroduced some coronavirus restrictions.

Nabiullina has joined those criticizing the slow pace of Russia’s vaccination campaign, with only around 12.5% of Russians having received a first dose of a coronavirus vaccine. On Friday, she linked the pace of vaccinations with Russia’s investment climate, saying foreign investors would look much more favorably on economies with a high rate of vaccinations.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more