Russian President Vladimir Putin mentioned late on Tuesday that the Russian economic system was performing higher than anticipated after Prime Minister Mikhail Mishustin reported that gross home product (GDP) development and inflation have been surprisingly constructive.
GDP development could exceed 2% this yr and shopper value inflation could not rise above 5% yearly, Mishustin informed Putin at a gathering on the Kremlin. The International Monetary Fund (IMF) expects the Russian economic system to develop 0.7% this yr.
“Our results, at least for the time being, let’s say, cautiously, are better than previously expected, better than predicted,” Putin mentioned, in response to a transcript on the Kremlin’s web site.
Analysts polled by Reuters on the finish of June noticed GDP development of 1.2% and inflation at 5.7% in 2023.
Russia’s economic system contracted 2.1% in 2022 and was below explicit strain within the spring of final yr when Kyiv’s allies imposed sweeping sanctions in opposition to Moscow over its army marketing campaign in Ukraine.
Russia’s technocrats have helped to offset among the blow by repurposing the economic system and propelling it with money, with the finance ministry saying earlier that public spending was 26.5% increased year-over-year within the first 5 months of the yr.
On Tuesday, Mishustin informed Putin that he had confidence that if there have been no drive majeure circumstances, the economic system would carry out effectively this yr.
“Dear Vladimir Vladimirovich (Putin), the country’s economy continues to confidently recover, despite the sanctions, despite all the impediments placed on our country,” Mishustin mentioned.
The impact of the sanctions has been painful with Western monetary markets and plenty of export markets for Russian firms and commodities closed.
Crucial oil and gasoline revenues in January-May of this yr have been almost half of what they have been a yr in the past within the corresponding interval, blamed on decrease costs for Urals crude and decrease pure gasoline export volumes.
Finance Minister Anton Siluanov has repeatedly mentioned Russia’s finances deficit this yr could be not more than 2% of GDP, though most analysts disagree.
The IMF expects Russia to see a sharply wider finances deficit this yr.
Source: www.dailysabah.com
