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Structural Changes in the Domestic Market in H1 2020

Nadezhda P. Volovik – Head of Foreign Trade Department of the Gaidar Institute; Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Olga I. Izryadnova – Head of Structural Policy Department of the Gaidar Institute; Leading Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Maria V. Kazakova – Deputy Director of Science at the Center for Regional Policy of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: kazakova @ranepa.ru

Simultaneous contraction of both supply and demand was the feature of the crisis situation this year. The economic situation was determined, firstly, by higher rates of decline in business activity in the services sector compared to the manufacture of goods, secondly, sharp drop in mining relative to manufacturing and, thirdly, contraction in net exports amid changes in market trends and demand on the global market of energy resources.

Economic recovery expected in H2 2020 is unlikely to be sufficient to offset significant financial losses incurred by business and mounting pressure on the labor market.

Key words: industrial production, consumer market, demand, supply, services, unemployment, pandemic, crisis.