In Central Bank they talked about the “cleansing effect” of the pandemic crisis. This was reported by RBC citing the analytical note of the Research and Forecasting Department of the Bank of Russia “Who leaves the market during the crisis.”
According to analysts from the Central Bank, in 2020, the market is mostly leaving the least productive enterprises, due to which the number of problem companies in the economy decreases and the workforce is freed, which can potentially be involved in more efficient production. Thus, in the medium and long term, the pandemic crisis has positive effects and helps to “cleanse” the economy.
At the same time, it is noted that the leaders among enterprises in terms of productivity in 2020 were much less likely to leave the market. The experts also noted that at the same time during this period the number of new companies entering the market has significantly decreased.
Previously World Bank in the annual report assessed the present and predicted the future of the Russian economy amid the coronavirus pandemic and its consequences, as well as made recommendations to improve the situation and integration into the global market. The authors call the coronavirus pandemic the cause of the deepest recession in the global economy since World War II. In such conditions, the Russian economy is also in decline. In the second quarter, it fell by 8 percent. At the same time, they managed to avoid an even larger fall – by 9.6 percent, predicted by experts.