Many Russian firms prioritise their market position over productivity growth; low competition and high entry barriers reduce their incentives for innovation. This approach extends the life of inefficient businesses whilst undermining the sustainability of efficient ones.
One in five of Russian professionals with higher education and permanent employment are impoverished or low-income. According to the HSE, poverty among professionals, which seemed to be a thing of the past, is now returning, and the crisis may exacerbate it.
The index, developed by the Bank of Russia on the basis of surveys of enterprises, enables real-time assessment of the Russian economy and its sectors. It displays a high correlation with GDP, coming out in advance of it in terms of the timing of the publication of statistics.
International sanctions have sparked a fundamental transformation in the Russian labour market, which may result in large-scale underutilisation of accrued human capital, notes Rostislav Kapeliushnikov, Corresponding Member of the Russian Academy of Sciences.
Russian businesses have faced foreign counterparts’ refusal to continue cooperation, suspension of imported components and the rising cost of logistics. Companies are looking for alternative production and logistics chains, the Bank of Russia survey finds.