Viral spending: Rospotrebnadzor assessed the damage to the Russian economy from the pandemic in 2020

The damage to the Russian economy from the coronavirus pandemic in 2020 amounted to almost 1 trillion rubles.

Such data are contained in the report published on Monday, July 5, Rospotrebnadzor report.

“Even without taking into account the losses of the non-produced gross national product due to deaths, persistent and temporary disability, the damage to the economy from a new infection in 2020 in value terms amounted to more than 997.06 billion rubles,” the document says.

As emphasized in the department, this figure is 1.4 times higher than the total damage from other infectious diseases.

At the same time, a more accurate calculation of financial losses remains difficult, since a significant part of budget spending fell on measures to support the economy, the service added.

In total, the authorities allocated more than 705 billion rubles from the budget to fight COVID-19 in 2020.

Of this, about 516 billion went to some direct payments to citizens and businesses, and more than 189 billion went to the organization and provision of medical care for patients with coronavirus.

In addition, more than 183 billion rubles were spent on treating people in hospitals, and the total costs for testing Russians exceeded 108.6 billion rubles, Rospotrebnadzor said.

We are talking here only about spending aimed at countering the pandemic and its consequences.

Meanwhile, the total volume of financial losses associated with the coronavirus in the economy in 2020 turned out to be significantly higher.

Georgy Ostapkovich, director of the Center for Market Research at the Institute for Statistical Studies and Economics of Knowledge, NRU HSE, spoke about this in an interview with RT.

“Last year, our economy contracted by 3% compared to the level of 2019.

Considering that the entire volume of our GDP was about 106 trillion rubles, the total economic losses, respectively, exceeded 3 trillion rubles, ”explained Ostapkovich.

However, according to him, the situation did not lead to critical consequences for the economy.

First of all, the economist attributes this to a low level of public debt and a high volume of accumulated reserves.

“In terms of reserves and public debt, we are now in the best financial position.

This was not the case either in the period of the USSR, or in the period of new Russia.

Therefore, do not worry too much about these losses.

Moreover, the money was spent for the benefit of people and companies, ”the expert added.

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One of the most costly was the program of concessional loans to businesses at 2% per annum to maintain employment.

Anastasia Uskova, CEO of the Rocket Work platform, spoke about this in an interview with RT.

Recall that from June 1 to November 1, 2020, companies and entrepreneurs affected by the pandemic could apply for a loan at a reduced rate.

The business had to use the money received to pay salaries to staff at the rate of one minimum wage (12,130 rubles) per employee.

The loans provided to companies are 85% secured by state guarantees.

The loan itself could be completely written off if employers saved 90% of their jobs.

If at least 80% of the state was retained, the state took on half of the loan and interest on it.

According to the Ministry of Economic Development, more than 220 thousand credit agreements worth 430 billion rubles were concluded within the framework of the initiative.

“In total, since April last year, small and medium-sized businesses, according to various estimates, have received loans for almost 4 trillion rubles.

About 6-10% of this amount is government spending on supporting enterprises.

In addition, direct payments of the minimum wage per employee for companies that have retained their staff, and, of course, the provision of funds to the population in the form of various benefits made their contribution, ”Uskova emphasized.

Difference of approaches

It is noteworthy that in Russia the economic damage from the consequences of the pandemic was significantly lower than in a number of other countries.

For example, in the United States, the authorities had to allocate $ 3 trillion (about 220 trillion rubles) to the fight against coronavirus, and in Europe - € 3.7 trillion (about 322 trillion rubles).

This is evidenced by the materials of the American government and the European Commission.

In part, this state of affairs is explained by experts interviewed by RT with a higher volume of GDP in the USA and Europe.

At the same time, experts note the difference in approaches to the provision of support measures.

“In Russia, aid was more targeted and targeted, so the costs were lower.

In addition, the different cost of medical and pharmaceutical services in Russia and abroad played a certain role.

In this regard, our spending on treatment and vaccination of people was also lower, "said Alexander Abramov, head of the laboratory for the analysis of institutions and financial markets at the Institute for Applied Economic Research, RANEPA, to RT.

According to Georgy Ostapkovich, in 2021 Russia will be able to compensate for the bulk of the losses incurred due to the pandemic.

According to the expert, the situation will largely depend on the pace of economic recovery.

“In 2021, Russia's GDP may increase by 3-3.5%. Thus, already this year, the economy will not only win back losses, but will also demonstrate slight growth compared to the base year 2019, which means that the losses will also be won back, ”the economist concluded.