The pandemic-induced economic crisis is still ahead, chief portfolio manager at the KT investment fund Vyacheslav Zaichenko said.
According to the economist, many people have already forgotten about the crisis since the COVID-19 lockdown measures were lifted. This, among others, is due to the beginning of the holiday season in Russia, which is having a positive effect on people’s mood. However, by late summer the consequences of the COVID-19 pandemic will be obvious, the Krasnaya Vesna information agency reported.
Currently, the economy is fueled by news about successful engineering developments, including Elon Musk’s recent statements on next year’s production of electric vehicles that do not require safety inspection. Such news is positively affecting the stock market.
The COVID-19 pandemic has exposed all vulnerabilities in the economy, Vyacheslav Zaichenko said, adding that it has shown how modern businesses actually operate. Production has yet to recover to pre-pandemic levels, while the global consumer buying power has decreased fourfold, the economist concluded.