Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

World News

Putin says Russian economy faring better than expected

President Vladimir Putin said late on Tuesday that the Russian economy was performing better than expected after Prime Minister Mikhail Mishustin reported to him that gross domestic product growth and inflation have been surprisingly positive.

GDP growth may exceed 2% this year and consumer price inflation may not rise above 5% in annual terms, Mr. Mishustin told Mr. Putin at a meeting at the Kremlin. The International Monetary Fund expects the Russian economy to grow 0.7% this year.

“Our results, at least for the time being, let’s say, cautiously, are better than previously expected, better than predicted,” Mr. Putin said, according to a transcript on the Kremlin’s website.

Analysts polled by Reuters at the end of June saw GDP growth of 1.2% and inflation at 5.7% in 2023.

Russia’s economy contracted 2.1% in 2022 and was under particular pressure in spring last year when Kyiv’s allies imposed sweeping sanctions against Moscow over its military campaign in Ukraine.

Russia’s technocrats have helped to offset some of the blow by repurposing the economy and propelling it with cash, with the finance ministry saying earlier that public spending was 26.5% higher year-on-year in the first five months of the year.

On Tuesday, Mr. Mishustin told Putin that he had confidence that if there was no force majeure circumstances, the economy would perform well this year.

“Dear Vladimir Vladimirovich (Putin), the country’s economy continues to confidently recover, despite the sanctions, despite all the impediments placed on our country,” Mr. Mishustin said.

The effect of the sanctions has been painful, however, with Western financial markets and many export markets for Russian companies and commodities closed.

Crucial oil and gas revenues in January-May of this year were nearly half of what they were a year ago in the corresponding period, blamed on lower prices for Urals crude and lower natural gas export volumes.

Finance Minister Anton Siluanov has repeatedly said Russia’s budget deficit this year would be no more than 2% of GDP, although most analysts disagree.

The International Monetary Fund is among those expecting Russia to see a sharply wider budget deficit this year. – Reuters

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved