Russian President Putin said the country’s economic performance is higher than expected
Russian President Vladimir Putin, at a meeting with Prime Minister Mikhail Mishustin, said that the country’s economic performance is better than expected. This is reported RIA News.
Putin and Mishustin met on the night of July 4-5 to discuss economic issues.
Our results, at least so far, let’s say so carefully, are better than expected, better than predicted. This gives us hope that all the tasks, as we set them, will at least be solved
Recovery of the Russian economy
Mishustin said that the Russian economy is recovering. According to him, the basis is to improve the well-being of the population.
The prime minister added that the task set by the Russian leader to increase the incomes of Russians is being fulfilled.
All this testifies to such a recovery. That people are starting to get more income
The Prime Minister also stressed that the country’s economy continues to recover, despite the sanctions. “The country’s economy continues, I would even say, to recover confidently, despite the sanctions, despite all the obstacles placed in our country,” the politician said.
On July 4, the Central Bank announced that among the three large-scale crisis periods in Russia in 2014-2015, 2020 and 2022, the last of them turned out to be the most difficult.
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The Bank of Russia clarified that against the backdrop of an unprecedented number of sanctions in 2022, the country’s economy experienced a systemic structural shock. The regulator also recalled that it had lost the opportunity to conduct transactions on the foreign exchange market in dollars and euros, as a result of which it was decided to introduce certain elements of foreign exchange regulation and foreign exchange control. The Central Bank clarified that the measures are necessary to maintain financial stability.
Growth in real wages
Mishustin also said that the growth of real wages for four months amounted to 4.2 percent.
People restored their savings, saved money, and now they are actively spending it. If we look at the indicator of the consumer market, we can say that the pre-crisis level has been exceeded by one and a half percent.
According to the Prime Minister, the nominal salary for four months was 11.4 percent.
At the end of June, Rosstat reported that real wages in the country in April increased by 10.4 percent in annual terms, in March the growth was 2.7 percent. The average monthly accrued salary increased by 13 percent to 71.2 thousand rubles.
During a speech at the St. Petersburg Economic Forum (SPIEF-2023), Putin said that the country’s economy should become an economy of high wages. In his opinion, the idea that the high cost of labor reduces the country’s potential is outdated.
The Russian leader also recalled that the future of the Russian economy lies in high technologies, and it is impossible to achieve high-quality work in this area using low-skilled labor.
Russian GDP Growth Forecast
At a meeting with the President of the country, Mishustin predicted the growth of Russian GDP. He expressed hope that GDP growth by the end of the year will be more than two percent. According to him, the growth driver is the manufacturing industry.
Finance Minister Anton Siluanov said earlier that by the end of 2022, Russia’s GDP decreased by 2.1 percent instead of the projected 8-20 percent. At the same time, citizens’ incomes decreased by one percent in annual terms, but soon began to grow again.
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During his speech at SPIEF 2023, Putin said that by the end of the year, GDP growth will be 1.5-2 percent, as positive macroeconomic trends are gaining momentum and strength. In his opinion, this will allow Russia to maintain its place in the list of the world’s leading economies.
In June, Putin wished Russia’s GDP growth as in Algeria or India. According to him, by the end of 2023, the economy in Algeria will grow by 4 percent.
The Minister of Economic Development of Russia Maxim Reshetnikov, in turn, explained that the reason for the growth of the economy is domestic demand. According to him, it is not only about budget expenditures, but also about the normalization of the savings model of behavior.
People restored their savings, saved money, and now they are actively spending it. If we look at the indicator of the consumer market, we can say that the pre-crisis level has been exceeded by one and a half percent.
The head of the department also noted the active growth of investments. In 2022, it amounted to 4.6 percent, the first quarter of 2023 was also in positive territory.
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