Putin called the second quarter of 2022 the most difficult for the economy

The second quarter of 2022 turned out to be the most difficult for the Russian economy and business. This was announced by Russian President Vladimir Putin, speaking at the plenary session SPIEF.

“The second quarter of last year was the most difficult for our economy and domestic business, when circumstances, the usual order of trade, logistics were rapidly changing, when, in fact, the whole fabric of business and economic life was redrawn. <...> But today we can confidently say that the strategy chosen then by both the state and business worked,” he said.

Putin recalled that in April this year, GDP grew by 3.3% in annual terms. The head of state said that by the end of the year GDP growth would be 1.5-2%, which would allow Russia to maintain its place among the world’s leading economies. Putin drew attention to the growth in industry and retail trade. According to him, the volume of output in the manufacturing industries increased by 2.9% compared to last year, despite the sanctions pressure.

According to the president, Russia’s competitive advantage is a stable macroeconomic policy. The economy entered a new reality with record low unemployment (3.3%) and inflation lower than elsewhere in Europe. It is 2.9%.

In April, the Ministry of Economy improved the forecast for the Russian economy in 2023 from a decline of 0.8% (in the September forecast) to growth of 1.2%. The main contribution to economic growth, according to Minister Maxim Reshetnikov, will be made by the recovery of consumer demand after the recession in 2022. The expected growth in household incomes will contribute to this, he noted. The forecast for GDP growth next year has been reduced from 2.6% to 2%. In 2025, the indicator will grow by 2.6%.