VTB warned about the risk of the "hysteresis effect" in the Russian economy.

      May 26, 2026 13:19 Economy The First Deputy President - Chairman of the Board of VTB, Dmitry Pyanov, warned in an interview with TASS about the possible consequences of the prolonged state of the Russian economy below its potential. He noted that such a situation could lead to the emergence of a "hysteresis effect," where the economic system "remembers" low levels of activity and loses the ability to recover. According to Pyanov, the "hysteresis effect" can be compared to a battery that does not charge above a certain level. "If the economy remains below its potential for a long time, productive forces may 'unlearn' to operate at higher levels," he explained. To prevent this negative scenario, Pyanov believes it is necessary to limit the duration of a tight monetary policy and minimize the time the economy spends in a state below potential. He added that while the economy may be under pressure for several months to solidify inflation expectations, exceeding this period could lead to serious consequences. "If such a situation lasts for a year or more, the risk of the hysteresis effect significantly increases," he concluded. NIA "Nizhny Novgorod" has channels on Telegram and MAX. Subscribe to stay updated on major events, exclusive materials, and timely information. Copyright © 1999—2025 NIA "Nizhny Novgorod". When reprinting, a hyperlink to NIA "Nizhny Novgorod" is mandatory. This resource may contain materials 18+