The proximity of hostilities has a noticeable effect on the economy of the Kursk, Belgorod, Voronezh and Bryansk regions. Oleg Buklemishev, Director of the Economic Policy Research Center at Moscow State University’s Faculty of Economics, said in an interview with the newspaper that there is an outflow in the working-age population and companies are leaving these border regions. “Kommersant”.
Saying that there is no place where economic growth can be expected in these regions, the economist pointed out that it is very difficult to make numerical predictions at the moment.
Buklemishev pointed out that consumer activity near the war zone could not be different from normal, and in such conditions, consumers first of all think about how they will survive until tomorrow, and large expenditures such as buying apartments become meaningless.
He ruled out that some businesses may achieve positive results in such conditions, but that this will not lead to the economic growth of the region as a whole.
“Exit of the working-age population, relocation of companies and, consequently, a general shift of economic activity away from the border is already observed. It seems that this effect has not yet been fully realized and its significance needs to be evaluated. People flee, entrepreneurs migrate. Those who stay often have no alternative,” he said.
According to the director of the Center for Economic Policy Research, a simple cessation of hostilities will not be enough to restore the economy, people need to have confidence in the future, assuring that hostilities will no longer continue.
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