Moscow authorities expect the capital’s economy to fall by 3-4% in 2022

The Moscow authorities called the main reasons for the decline in GDP “the slowdown in a number of sectors of the economy”, which has been happening since March, as well as high inflation. The mayor’s office expects the city’s economy to decline by 3-4% in 2022 instead of the previously predicted growth of 3%. This was stated RBC Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Yefimov on the sidelines of the forum on the introduction of the investment standard.

As Mr. Yefimov noted, the most difficult situation has developed in the automotive industry and metallurgy. According to him, “there was an almost complete halt in the automotive industry and related industries.” “If we take metallurgy, our press production together with Japanese investors has stopped,” he specified.

The deputy mayor added that there is also a slowdown in trade volumes, especially in non-food products and cars. “Other industries generally feel confident. Moreover, we see significant growth in many areas – in terms of production and workload. Nevertheless, negative factors will still affect economic growth,” said Vladimir Yefimov.

March in Moscow created a special commission to monitor and support the economic situation. In the same month, Moscow Mayor Sergei Sobyanin presented a business support plan. In particular, in order to stabilize the work of the affected enterprises and organizations, they were granted a delay of up to 6 months for the payment of rental payments, and also imposed a moratorium on increasing rental rates for land plots and non-residential facilities for the whole year.

Laura Keffer