How Russian economy is handling second wave of pandemic

Economic dynamics is slowing down across all major verticals, SberIndex analysts claim. However, as opposed to April and May, the current slowdown is not a meltdown in nature. Nor is it a sudden shutdown of the entire economy.

Consumer spending fell 2.7% y-o-y in October. SMEs saw 0.7% lower revenues in annual terms. Gross payrolls remain at a level of 2019, but without the coronavirus, the real labor income of Russians would have been 8.9% higher.

The onset of the second wave coincided with the time when the pent-up demand that had formed during the lockdown in April and May was already met. In response to the increased infection threat, the consumer has changed one’s behavior and is gradually cutting the costs associated with visiting crowded places.