Bank of Russia launches regular reports on regional economic developments

The first issue of the new analytical report Regional Economy: Bank of Russia Main Branches’ Commentaries offers updates on key economic development trends in Russia’s regions, which are taken into account in monetary policy decisions.

The document focuses on the impact of the recent rise in coronavirus infections, tightened restrictions and government support measures on current economic conditions, as well as expectations for their evolution. According to Bank of Russia main branches, the acceleration in consumer price growth is largely driven by temporary supply-side factors as seen in the markets for several crops, coupled with the exchange rate pass-through effect.

The issue features insights into current trends in consumer demand.

The report also discusses price changes across macroregions and drivers behind them including consumer activity, household incomes and monetary conditions. Also, a detailed analysis of regional industrial profiles is presented.

The new study is special in taking into account, beyond statistical data, current economic assessments and an economic outlook by market players, analysts and industrial associations. The authors use the unique source of information — data from the Bank of Russia’s business surveys conducted by the main branches.

The relevance of studies into regional development specifics, including those based on views of the business community, is supported by global practices. Many central banks (in Norway, Switzerland and the USA) publish regular reports containing analysis of regional economic developments.

Eight issues of the report are planned for 2021, each to be published ahead of the key rate decision and in the run-up to the quiet week.