Socio-economic consequences of the first and second waves of the pandemic in Russian regions

Relevance. The spread of the coronavirus infection and the ensuing economic restrictions significantly influenced the main parameters of the socio-economic development of Russia and its territories, affecting the growth rate, production structure, territorial differentiation and competitiveness of Russian regions. Purpose of the study. The key goal of the study was to identify the socio-economic changes in the development of the country and its regions during the pandemic. Data and Methods. The analysis relies on open data on the socio-economic development of Russian regions for 2019–2021 (monthly, quarterly and annual periods), posted on the official website of Rosstat. Methodologically, the study is based on the comparative analysis of the data for the federal districts and their regions. Results. The study describes the main trends in the development of industry, trade, paid services, and investment potential and in the dynamics of unemployment and income in federal districts and regions. The first wave hit Russian regions the hardest due to the rigorous restrictions. Although no sharp recession was detected during the second wave, the stagnation in the key sectors persisted. The third wave is expected to have the same impact as the second. Conclusions. After the second wave subsided, there was a revival of economic activity in the spring of 2021. However, this has not turned into a steady trend yet. The coronavirus pandemic affected the competitiveness of regions. The importance of certain factors (including those related to resource potential) decreased during the pandemic, while the role of the competitive position of regions in the distribution of federal budget transfers increased.