Impact of socio-economic growth and economic potential on the sustainable development of region

Abstract

This article presents a methodological approach to assessing the real wellbeing of citizens in the territory of their residence. An attempt was made to comprehensively assess wellbeing, taking into account the economic factors of potential and growth. Moreover, under crisis conditions, these factors may demonstrate a different dynamic. The ongoing economic uncertainly inherent in the development of Russian regions has intensified with the unfolding of the Covid-19 pandemic. The structural heterogeneity of the domestic economy, manifested in the underfunding of human development, led to an increase in poverty, population decline and, ultimately, to a decrease in welfare. The principle of catch-up modernization has not justified itself for over almost three decades of its application. We propose a diagnostic approach to assessing the state of a region’s economy taking into account the dynamics of indicators and impulse response behaviour of turning points. In order to provide a timely manner of calculations, techniques of express diagnostics were used, which enabled estimation of the development trajectory in the context of a certain crisis type. The proposed methodology was tested using the example of the Ural Federal District.