Putin announced the improvement of forecasts for the dynamics of Russia’s GDP

Forecasts on the dynamics of Russia’s GDP were significantly improved against the backdrop of positive statistics. This was stated by Russian President Vladimir Putin during a meeting on economic issues.

“Let me remind you that when preparing the current budget, the government proceeded from the expected decline in GDP by 2.9% last year, and by 0.8% this year. Now, against the backdrop of positive statistics, colleagues have revised their estimates, significantly improved them. <...> By the end of April, Russia’s GDP will add significantly in real terms,” he said.

Despite the growth of the Russian economy, the situation should not be “left on its own,” as external risk factors still persist, Putin stressed. “It is necessary to constantly monitor the effectiveness of supporting industries and sectors of industry, small and medium-sized companies, identify problem areas in time and promptly resolve emerging business difficulties,” the president said.

As for inflation, by the end of the month it is expected to be below 3%. Putin urged to avoid excessive acceleration and deceleration of inflation, as this may affect business plans, the income of the country’s residents and the volume of budget revenues.

According to Putin, in the first quarter of 2023, revenues to the Russian budget exceeded 13 trillion rubles, which is in line with last year’s figures. It is expected that in the second quarter the budget will receive more funds that are not related to oil and gas revenues.

April 11 International Monetary Fund (IMF) improved forecasts for Russia’s GDP for 2023. According to the organization, the growth of the Russian economy this year may be 0.7% instead of 0.3%, which the IMF wrote in January. April 6 World Bank predicted reduction of Russia’s GDP in 2023 by 0.2% instead of the previously announced 3.3%.

Earlier, the Ministry of Economic Development predicted that by the end of 2023, Russia’s GDP would decrease by 0.8%, while in 2024 the Russian economy is expected to grow by 2.6%. In February, the Central Bank improved its GDP forecast for 2023 from a 1% decline to a 1% growth instead of a 1-4% decline according to the October forecast.