ALEXEY VEDEV: HOUSEHOLDS REAL INCOMES WILL REDUCE BY MORE THAN 5%
Alexey Vedev, Head of Financial Studies Department of the Gaidar Institute, shared his forecasts with MK regarding the forthcoming economic recession amid spread of COVID-19 epidemic, which turned out to be far more dangerous than fall of oil market.
The coronavirus era almost paralyzed the domestic economy, negatively affecting small and medium-sized businesses, as well as incomes of Russian people.
Alexey Vedev expressed his assurance: “Since the socio-economic sphere will be hit by the most profound crisis, real incomes of households, which have already stagnated, will fall by more than 5%. Even when the epidemic declines, domestic demand will not jump-start soon. If there is no demand, there will be no investment, and hence, no profit. Employers, whose business depends on a continuous cash flow, will simply have no funds to pay to their employees.”
Alexey Vedev expressed his assurance: “Since the socio-economic sphere will be hit by the most profound crisis, real incomes of households, which have already stagnated, will fall by more than 5%. Even when the epidemic declines, domestic demand will not jump-start soon. If there is no demand, there will be no investment, and hence, no profit. Employers, whose business depends on a continuous cash flow, will simply have no funds to pay to their employees.”