Putin urged not to relax as the economy enters a growth trajectory

Russian civil servants should not relax as the economy enters a growth trajectory, declared Russian President Vladimir Putin during a meeting with government members.

Putin noted that the country’s economy has been showing positive dynamics since July last year. This happened due to the development by Russian business of the niches vacated after the departure of Western companies, as well as the development of ties with the growing countries of the East and South.

“However, the return to the growth trajectory should not make us relax. It is necessary to support and strengthen the positive trends in our economy, increase its efficiency, ensure technological, personnel and financial sovereignty,” the head of state said.

Putin also urged the government to solve these problems quickly, “without unnecessary bureaucracy and delays,” since the sanctions imposed against the Russian Federation could negatively affect the economy in the medium term.

The President noted that unemployment in Russia remains at a record low, but this does not mean that all problems in the labor market have been resolved. “In general, there are questions about the quality of jobs. In some regions and localities, the unemployment rate is still much higher than the national average,” he said. On average, real incomes are growing across the country, but this is not the case in a number of regions, so Putin expects more active actions from the government in solving this problem.

The head of state added that the dynamics of Russians’ incomes is the main indicator of the state’s economic policy. According to him, the growth of real incomes of the population shows very modest figures, but still this is a movement in the right direction.

Earlier, Russian Prime Minister Mikhail Mishustin said that the decline in the Russian economy in 2022 turned out to be moderate, the economy is now back on a growth trajectory. The Prime Minister stressed that Russia “withstood” in the face of economic pressure, although it “was not easy.” Mishustin noted that “our economic system has shown such flexibility not for the first time.” He recalled how, during the pandemic, the Russian economy “passed through the crisis more confidently than many Western countries.”

According to the estimates of the Ministry of Economic Development, by the end of 2023, GDP will 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.