Sergei Sobyanin: Moscow’s economy will recover by the end of 2021

November 15, 2020
Economy and entrepreneurship

There are no reasons to change Moscow’s development strategy amid the coronavirus epidemic, Sergei Sobyanin noted at the Strong Ideas for New Times Forum. 

“We will continue to implement a strategy aimed at creating a competitive global city. It calls for infrastructure, transport, social and economic improvements and the creation of a comfortable competitive urban environment on a par with other global cities. This is our basic aspiration and objective, and we will not deviate from this trajectory despite budgetary and economic challenges,” the Moscow Mayor pointed out.

Resuming growth

Sergei Sobyanin believes that the city economy will start recovering very quickly as soon as the coronavirus epidemic subsides.

“In my opinion, 2021 will be a difficult year, and its beginning may be even more challenging than 2020, but we expect improvements and economic normalisation in the city, the country and the rest of the world by the end of 2021,” he said.

Of singular importance in this respect is the creation of the coronavirus vaccines and their large-scale manufacturing, Sobyanin added. Natural immunity is another important factor. “In other words, we will change the trajectory to growth within a few months, one way or another,” the Mayor noted.

He said the city had been affected by absolutely all consequences of the pandemic.

“Any way you look at it, absolutely all global trends have had an impact on the Moscow economy. If energy use is down in Europe, this is decreasing the revenues of our energy companies, which reduce their investment and pay less tax,” he said.

In addition to this, the pandemic has hit the tourism industry hard, because foreigners cannot visit Moscow. The revenues of our hotel businesses and the tourism sector as a whole are down by 60 percent,” the Mayor added.

However, the Moscow economy is quite flexible and does not depend on any one particular sector, which means that it can quickly recover after the pandemic.

“I believe we will bounce back quicker than after a systemic economic crisis, because the pandemic is an event-related thing. Economic recovery will begin as soon as it ends, and a rebound may be quicker than after any other crisis, because the deferred demand for services is very high,” Sergei Sobyanin pointed out.

He added that when stability returns the city will see a rapid growth in all spheres of life, because people will be able to receive the services that are currently not available to them.

Stability in healthcare

These forecasts are based not only on the global and national coronavirus trends, but also on the capabilities of the national healthcare system and the autumn and winter season factors.

“The restrictions we introduce are forward-looking. We look at the forecasts for a week or even two or three weeks ahead, so as to maintain the stability of our healthcare system. Our further decisions will be based on the situation we will have in two or three weeks. These decisions should limit the functioning of the economy and businesses as little as possible while also ensuring guaranteed medical assistance to the people,” Mr Sobyanin explained.

The Mayor added that the current period differs from the spring situation, first of all when it comes to the city’s readiness for the pandemic: “Over the past months, we have additionally deployed about 8,000 hospital beds and learned to streamline the functioning of all healthcare settings based on carefully adjusted technological methods. In other words, the scale of the pandemic reached a critical level in spring, and we had to impose a lockdown. Today we can deal with almost the same level without such sweeping restrictions.”

Go to the special project and learn more about COVID-19 prevention and treatment methods. 


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