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Vaccination against coronavirus to positively affect Russia’s investment attractiveness

The Bank of Russia expects the economy to return to the pre-crisis level as early as this quarter

MOSCOW, June 11. /TASS/. Vaccination against the coronavirus will positively influence Russia’s GDP, which generally improves the country’s investment attractiveness, Central Bank Chief Elvira Nabiullina told a press conference on Friday.

"Creating herd immunity, vaccination will positively influence GDP. First, the remaining restrictions in a number of sectors, including the services sector, may be lifted. Second, fewer possibilities of such restrictions, waves [of pandemic] that may lead to more economic restrictions. <…> Russian and foreign investors will have more confidence in Russia’s economy in case of herd immunity," she said.

The regulator expects the economy to return to the pre-crisis level as early as this quarter, Nabiullina noted. In April, the Bank of Russia projected 3-4% GDP growth, while in July it will most likely be upgraded.

"However, the question is not how fast the economy will recover, but how fast it will grow after the recovery. It is important to make sure that it is not an inflation growth, but the growth of economic potential. It is not correct to expect GDP growth of 3-4% in the mid-term to be ensured by growth of inflation, may be even dangerous. It is necessary to boost labor efficiency and economic potential to receive sustainable growth," she explained.