HSE experts call for preparation for long recession

Forecasts that the global economy will overcome the coronavirus recession in 2021 did not come true, countries should adapt to a slow recovery. This conclusion is contained in the report “Assessing the impact of the crisis associated with the COVID-19 pandemic on the sectors of the Russian economy and their post-crisis development”, prepared by experts from the National Research University Higher School of Economics and the Russian Union of Industrialists and Entrepreneurs. The results of the study are TASS.

The report says that the causes of the economic crisis are still not eliminated - “different intensity of quarantine restrictions” and different rates of vaccination of the population in the face of the emergence of new strains of coronavirus affect. All of this continues to affect national economies and global supply chains. Therefore, governments should prepare for "longer recession conditions."

The authors state that the pandemic has forced states to become more actively involved in helping businesses. On the one hand, they were able to solve a number of problems, on the other hand, experts warn against strengthening control over businesses that have received state support and interfering in pricing. Such a trend could lead to "material distortions in the relevant markets".

Another factor in the possible strengthening of control is the introduction of new technologies, which theoretically “allow you to control the business in all decisions and embed it in the execution of decisions“ from top to bottom ””.

Analysts note that the administrative burden on businesses, contrary to expectations, has not eased, and in some cases, on the contrary, has increased. The report also refers to the ongoing processes of absorption of promising companies, in particular, by large companies with state participation.

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