Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Collapse of the Russian economy
Economy

The collapse of the Russian economy: consequences of the coronavirus pandemic

06.02.2021
2 min read

How serious the collapse of the Russian economy will be: forecast

The coronavirus pandemic had serious consequences for the world market. Different States were affected in varying degrees, and the recovery process would take a long time. According to Bloomberg’s analysis, Russia’s economy has collapsed, a record for the country.
In the second quarter of this year, GDP fell by 16%, which is the highest level since the 90s. The period from April to June was even worse for the local economy than the financial crisis in 2008.
For the Russian automotive market the most critical period was April, which experts dubbed “black”. Compared to the same period in 2019, sales fell by a record 72%. The manufacturing industry was also affected this month. Here, the PMI business activity index collapsed to 1997 values.
Quarantine in Russia was announced on March 30. Initially it was supposed to last until April 5, but the growing number of people falling ill at COVID-19 forced the authorities to change the end date to May 12.
The Central Bank’s forecast suggests that Russia’s economy will shrink by 4-6% by the end of this year as a result of the pandemic. The Ministry of Economic Development has shown its analysis of the country’s development during 2020-2022. According to the forecast from this agency, the GDP decline will be higher than experts predicted at the beginning of the pandemic.
Now the Russian economy is showing signs of recovery. Business activity is growing and there is an increase in demand for transportation by various modes of transport. However, it is too early to speak about the full functioning of processes.

Collapse of the Russian economy

The coronavirus pandemic has radically changed the players on the world market. Many industries have experienced huge losses, but there were those that could earn.
Most companies have switched to remote operation, and the need for quality video conferencing software has increased. The Zoom platform became an actual service, whose shares rose to record values in just a few weeks amid the worst collapse of the Dow Jones index. Back in January, the company’s shares cost 64 dollars apiece, and by April rose to 169 dollars.
The number of users in streaming services, such as Netflix and YouTube, has also increased. Despite the decline due to deteriorating broadcast quality and higher prices for services, these online platforms were able to quickly recover and increase last year’s performance.
Promotions also soared in the gaming industry, traffic on such platforms increased by 75% in March. Watching movies increased by 32% and video by 36%.
Pharmaceutical and healthcare have become other areas where revenue breaks records. Shares of companies that develop drugs against COVID-19 increased by 250%.

Tags: Global Economy
0
Previous Post Outstanding venture capital investor David Sze: A professional success story Next Post Great Britain started selling bonds with a negative yield

You Might Also Like

Sugar production process
Economy
Sugar production process in Thailand dropped to 90 million tons
09.10.2020
economic dedollarization
Economy
What is the dedollarization of the economy in the case of China
05.08.2020
world creditor China
Economy
China, the world creditor, is driving weak countries into a debt hole
06.06.2022
development of the Polish atom
Economy
Polish atom: the country plans to build its first nuclear power plant
10.01.2023
global economic growth
Economy
How the world economy will grow this year
16.02.2022
India's GDP growth
Economy
India’s GDP growth reached a minimum: reasons for the country’s economic slowdown
09.09.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics