Tue, 05 Dec 2023

Putin outlines economic outlook for Russia

09 Dec 2022, 23:36 GMT+10

Positive dynamics are forecast for the country's GDP in the coming years, the president says

The Russian economy will decrease by only 2.9% this year, with positive dynamics projected for the future, President Vladimir Putin said on Friday while addressing the summit of the Eurasian Economic Union (EAEU) in Bishkek, Kyrgyzstan.

"As for the development of the [Russian] economy as a whole, we were forecast to have an economic decline somewhere under 20%," he said, adding that despite all the pressures the downturn in 2023 is expected to be just 0.9%, and the situation "will continue to improve." 

According to Putin, the government will carry on with its work on reducing inflation, which already shows an "obvious downward trend." By the end of this year, the rate could drop to an "acceptable" 12.2%, while by the end of the first quarter of 2023, it is predicted to fall to 5% or lower, he said.

Putin also pointed to record inflation rates across the EU, which in some member states reach "sky-high" levels. Such indicators have not been recorded there for several decades, he said.

The president stressed that strong Russian economic performance is important for all countries participating in the EEU since it affects other economies of the bloc as well.

He called on the EEU to remove customs and administrative barriers because they hinder free trade between the nations.

The EEU, which is based on the Customs Union of Russia, Kazakhstan, and Belarus, was established in 2015, and later joined by Armenia and Kyrgyzstan. In 2016, Vietnam officially became the first non-regional nation to become a member of the trade bloc. The union is designed to ensure the free movement of goods, services, capital, and workers between member states.

For more stories on economy & finance visit RT's business section

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