Mishustin announced the consolidation of economic growth in Russia with a GDP of more than 2%

The economic growth that began in Russia in the third quarter has consolidated, and the country’s GDP growth in January-July exceeded 2%, informed Prime Minister Mikhail Mishustin at a meeting on the draft federal budget.

“Economic growth has begun in Russia since the third quarter. We see that it has taken hold <...> In general, over the seven months of this year, this figure increased by more than 2%,” the government press service quotes him as saying.

In July, GDP exceeded the 2022 level by 5%, and the 2021 level by almost 1%, the prime minister added.

The main driver of growth during this period, Mishustin said, was the manufacturing industry, which showed growth of 6%. Industrial production grew by 6% in June and by 5% in July. The production of computers, electronics, optics increased by 30% in January-July, electrical equipment – more than 20%. The Prime Minister also noted the good performance of the metallurgical, food industries, clothing, furniture and plastic products.

“All this suggests that Russian business continues to confidently adapt to external challenges. Explores promising niches. It is expanding existing projects and launching new ones,” he emphasized.

Investment activity increased by 2% in the second quarter, which allows us to expect that these processes will continue in the coming years, Mishustin concluded.

The prime minister also said at the meeting that the federal budget in August was executed with a surplus of 230 billion rubles. A significant role was played by the increase in non-oil and gas revenues, which exceeded RUB 1.82 trillion. (+56.5% year on year).

The Ministry of Economic Development in its review “On the current situation” estimated GDP growth for January–July at 2.1% – previously the department estimated growth at 1.4%. At the end of August Rosstat appreciated Russia’s GDP growth in the first half of the year was 1.6%.

In July Mishustin stated, that the country’s GDP by the end of 2023 could grow by more than 2% if “there are no force majeure circumstances.” Russian President Vladimir Putin said that the growth rate of the Russian economy this year has accelerated from month to month, so we can assume that in 2023 growth will completely cover last year’s decline.