Aggregated News From Investment Management Regulators

Regional economy: economic revival in most regions


Please complete the required fields.

Economic activity was reviving in the majority of Russian regions in December 2020—January 2021, despite the existing anti-pandemic restrictions. Price trends were still affected predominantly by temporary factors. The pandemic had a considerable impact on the labour market structure. Combined with a general decline in employment, this caused staff shortages in a number of industries. All these trends are covered in the new issue of the analytical review Regional Economy: Commentaries by Bank of Russia Main Branches.

The rebound of economic activity was driven by accommodative monetary conditions. Over December—January, mining enterprises expanded their coal and gas output. Economic activity also restored in construction and engineering, which pushed upwards output in metallurgy, metal processing, and wood processing. Pharmaceutical output also demonstrated steady upward trends, including as a result of a fast expansion of coronavirus vaccine production. The domestic tourist flow increased significantly during the New Year holidays as foreign destinations remained mostly closed.

However, not all economic sectors enjoyed positive changes. Anti-pandemic restrictions limit the provision of a whole range of services to households. Consumer demand bounced back notably during the New Year holidays, yet retailers primarily consider this trend to be temporary. Enterprises faced certain difficulties due to restrictions in Russia’s trading partners (e.g. in the fishing industry). A large number of companies complained about higher costs and increased pressure on prices, including due to a weaker ruble.

Nonetheless, companies’ estimates of the current situation and business climate prospects are improving. As individual regions eased anti-pandemic restrictions, the number of personnel in the service sector has started to restore.

The new issue includes special topics — the analysis of changes in the labour market and current trends in real estate.

See PDF here:

This news item was originally published by the Central Bank of the Russian Federation (CBR RU). For more information, see the Source Link.

Regulator Information

Abbreviation: CBR
Jurisdiction: Russian Federation

Recent Articles

New SRO Compliance Priorities Report for 2022/2023: Helping Firms with Compliance

Executive Summary We are pleased to present our annual Compliance Priorities Report: Helping Firms with Compliance for 2022/2023. This year’s report outlines our hybrid return to the office...


We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Communiqué No. 02 Multiple Banking Capitalization Index of December 2022

This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

FIN-FSA’s Annual Report 2022: State of the financial sector remained solid, but global events caused turmoil in the operating environment

The state of the financial sector remained good in 2022; however, Russia’s invasion of Ukraine increased risks to both economic development and cyber security. “Risks...

Get the latest from Regulatory.News in your inbox!