Monitoring sectoral financial flows: economy adjusting to restrictions in place
Economic activity in Russia remains subdued, as declining external demand and the anti-pandemic restrictions in place are taking their toll. In the space of the third non-work week, volumes of incoming payments in the national payment system showed a slightly rising deviation from their ‘normal’ levels, compared to the second non-work week. This deviation is however smaller than in the first non-work week and 20.4% short of the ‘normal’ reading for this period. The data are unveiled in the second volume of Monitoring Sectoral Financial Flows, a weekly Bank of Russia review.
Also, the third week registered a substantial payment lag across sectors focused on investment demand such as construction, research and development and others. Those focused on consumer and intermediate demand, in particular food manufacturing and metallurgy, showed a much more measured lag, in a sign that the economy is undergoing a gradual adjustment to the restrictions in place.
The strongest deviation from ‘normal’ levels is seen in sectors immediately damaged by anti-pandemic measures, which include transport services, hotel services and public catering among others.
